How Is Vranken-Pommery Monopole Société Anonyme's (EPA:VRAP) CEO Paid Relative To Peers?

The CEO of Vranken-Pommery Monopole Société Anonyme (EPA:VRAP) is Paul-François Vranken, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Vranken-Pommery Monopole Société Anonyme.

View our latest analysis for Vranken-Pommery Monopole Société Anonyme

Comparing Vranken-Pommery Monopole Société Anonyme's CEO Compensation With the industry

According to our data, Vranken-Pommery Monopole Société Anonyme has a market capitalization of €131m, and paid its CEO total annual compensation worth €636k over the year to December 2019. This means that the compensation hasn't changed much from last year. Notably, the salary which is €622.9k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from €82m to €328m, the reported median CEO total compensation was €319k. Hence, we can conclude that Paul-François Vranken is remunerated higher than the industry median. Moreover, Paul-François Vranken also holds €103k worth of Vranken-Pommery Monopole Société Anonyme stock directly under their own name.

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Vranken-Pommery Monopole Société Anonyme has gone down a largely traditional route, paying Paul-François Vranken a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Vranken-Pommery Monopole Société Anonyme's Growth Numbers

Over the last three years, Vranken-Pommery Monopole Société Anonyme has shrunk its earnings per share by 66% per year. It saw its revenue drop 14% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Vranken-Pommery Monopole Société Anonyme Been A Good Investment?

Since shareholders would have lost about 34% over three years, some Vranken-Pommery Monopole Société Anonyme investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Vranken-Pommery Monopole Société Anonyme pays its CEO a majority of compensation through a salary. As we noted earlier, Vranken-Pommery Monopole Société Anonyme pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Vranken-Pommery Monopole Société Anonyme we think you should know about.

Switching gears from Vranken-Pommery Monopole Société Anonyme, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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