Here's Why It's Unlikely That Clariane SE's (EPA:CLARI) CEO Will See A Pay Rise This Year

Key Insights

• Clariane to hold its Annual General Meeting on 10th of June
• Salary of €520.0k is part of CEO Sophie Boissard's total remuneration
• Total compensation is 154% above industry average
• Over the past three years, Clariane's EPS fell by 59% and over the past three years, the total loss to shareholders 89%

The results at Clariane SE (EPA:CLARI) have been quite disappointing recently and CEO Sophie Boissard bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 10th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Clariane

How Does Total Compensation For Sophie Boissard Compare With Other Companies In The Industry?

According to our data, Clariane SE has a market capitalization of €355m, and paid its CEO total annual compensation worth €1.3m over the year to December 2023. We note that's a decrease of 8.1% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €520k.

On examining similar-sized companies in the France Healthcare industry with market capitalizations between €184m and €734m, we discovered that the median CEO total compensation of that group was €514k. Accordingly, our analysis reveals that Clariane SE pays Sophie Boissard north of the industry median. Moreover, Sophie Boissard also holds €224k worth of Clariane stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€520k	€450k	40%
Other	€785k	€970k	60%
Total Compensation	€1.3m	€1.4m	100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Clariane sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Clariane SE's Growth Numbers

Clariane SE has reduced its earnings per share by 59% a year over the last three years. In the last year, its revenue is up 13%.

Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Clariane SE Been A Good Investment?

With a total shareholder return of -89% over three years, Clariane SE shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Clariane that investors should think about before committing capital to this 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.