Here's Why Shareholders Will Not Be Complaining About Amplitude Surgical SA's (EPA:AMPLI) CEO Pay Packet

Key Insights

• Amplitude Surgical to hold its Annual General Meeting on 18th of December
• CEO Olivier Jallabert's total compensation includes salary of €347.5k
• The total compensation is similar to the average for the industry
• Amplitude Surgical's EPS grew by 71% over the past three years while total shareholder return over the past three years was 61%

It would be hard to discount the role that CEO Olivier Jallabert has played in delivering the impressive results at Amplitude Surgical SA (EPA:AMPLI) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 18th of December. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Amplitude Surgical

Comparing Amplitude Surgical SA's CEO Compensation With The Industry

Our data indicates that Amplitude Surgical SA has a market capitalization of €157m, and total annual CEO compensation was reported as €530k for the year to June 2024. That's a notable decrease of 14% on last year. We note that the salary portion, which stands at €347.5k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the French Medical Equipment industry with market capitalizations ranging from €95m to €381m, the reported median CEO total compensation was €530k. From this we gather that Olivier Jallabert is paid around the median for CEOs in the industry. What's more, Olivier Jallabert holds €402k worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	€348k	€345k	66%
Other	€183k	€272k	34%
Total Compensation	€530k	€617k	100%

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Amplitude Surgical is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Amplitude Surgical SA's Growth Numbers

Amplitude Surgical SA has seen its earnings per share (EPS) increase by 71% a year over the past three years. In the last year, its revenue is up 5.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Amplitude Surgical SA Been A Good Investment?

Boasting a total shareholder return of 61% over three years, Amplitude Surgical SA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Amplitude Surgical (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.