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Olivier Jallabert has been the CEO of Amplitude Surgical SA (EPA:AMPLI) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Olivier Jallabert’s Compensation Compare With Similar Sized Companies?
Our data indicates that Amplitude Surgical SA is worth €151m, and total annual CEO compensation is €412k. (This is based on the year to June 2017). We think total compensation is more important but we note that the CEO salary is lower, at €275k. When we examined a selection of companies with market caps ranging from €88m to €353m, we found the median CEO compensation was €349k.
So Olivier Jallabert is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Amplitude Surgical has changed from year to year.
Is Amplitude Surgical SA Growing?
Amplitude Surgical SA has reduced its earnings per share by an average of 9.8% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 7.5% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Amplitude Surgical SA Been A Good Investment?
Since shareholders would have lost about 12% over three years, some Amplitude Surgical SA shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Olivier Jallabert is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Amplitude Surgical (free visualization of insider trades).
If you want to buy a stock that is better than Amplitude Surgical, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.