We Think Ramsay Générale de Santé SA's (EPA:GDS) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Ramsay Générale de Santé's Annual General Meeting to take place on 12th of December
• Salary of €640.0k is part of CEO Pascal Roche's total remuneration
• Total compensation is similar to the industry average
• Ramsay Générale de Santé's EPS declined by 63% over the past three years while total shareholder loss over the past three years was 47%

Shareholders will probably not be too impressed with the underwhelming results at Ramsay Générale de Santé SA (EPA:GDS) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 12th of December. 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Ramsay Générale de Santé

Comparing Ramsay Générale de Santé SA's CEO Compensation With The Industry

According to our data, Ramsay Générale de Santé SA has a market capitalization of €1.3b, and paid its CEO total annual compensation worth €1.4m over the year to June 2024. Notably, that's an increase of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €640k.

In comparison with other companies in the France Healthcare industry with market capitalizations ranging from €946m to €3.0b, the reported median CEO total compensation was €1.9m. From this we gather that Pascal Roche is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	€640k	€610k	45%
Other	€789k	€644k	55%
Total Compensation	€1.4m	€1.3m	100%

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. Ramsay Générale de Santé sets aside a smaller share of compensation for salary, in comparison to the overall 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

Ramsay Générale de Santé SA has reduced its earnings per share by 63% a year over the last three years. Its revenue is up 6.5% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

The return of -47% over three years would not have pleased Ramsay Générale de Santé SA shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Ramsay Générale de Santé that you should be aware of before investing.

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.