We Discuss Why Ramsay Générale de Santé SA's (EPA:GDS) CEO Compensation May Be Closely Reviewed

Key Insights

• Ramsay Générale de Santé to hold its Annual General Meeting on 11th of December
• Total pay for CEO Pascal Roche includes €640.0k salary
• Total compensation is 50% above industry average
• Ramsay Générale de Santé's three-year loss to shareholders was 53% while its EPS was down 119% over the past three years

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Ramsay Générale de Santé SA (EPA:GDS) has not performed well recently and CEO Pascal Roche will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 11th of December. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Ramsay Générale de Santé

How Does Total Compensation For Pascal Roche Compare With Other Companies In The Industry?

According to our data, Ramsay Générale de Santé SA has a market capitalization of €998m, and paid its CEO total annual compensation worth €1.5m over the year to June 2025. Notably, that's an increase of 8.3% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €640k.

On comparing similar companies from the France Healthcare industry with market caps ranging from €343m to €1.4b, we found that the median CEO total compensation was €1.0m. This suggests that Pascal Roche is paid more than the median for the industry.

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. Ramsay Générale de Santé pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Ramsay Générale de Santé SA's Growth Numbers

Over the last three years, Ramsay Générale de Santé SA has shrunk its earnings per share by 119% per year. In the last year, its revenue is up 4.7%.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Ramsay Générale de Santé SA Been A Good Investment?

With a total shareholder return of -53% over three years, Ramsay Générale de Santé SA shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

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.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Ramsay Générale de Santé that investors should be aware of in a dynamic business environment.

Important note: Ramsay Générale de Santé is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.