Here's Why Interparfums SA's (EPA:ITP) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Interparfums will host its Annual General Meeting on 16th of April
• CEO Philippe Benacin's total compensation includes salary of €504.0k
• The overall pay is comparable to the industry average
• Over the past three years, Interparfums' EPS grew by 53% and over the past three years, the total shareholder return was 25%

Performance at Interparfums SA (EPA:ITP) has been reasonably good and CEO Philippe Benacin has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16th of April. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Interparfums

Comparing Interparfums SA's CEO Compensation With The Industry

At the time of writing, our data shows that Interparfums SA has a market capitalization of €3.5b, and reported total annual CEO compensation of €895k for the year to December 2023. That's a modest increase of 6.5% on the prior year. Notably, the salary which is €504.0k, represents a considerable chunk of the total compensation being paid.

On examining similar-sized companies in the France Personal Products industry with market capitalizations between €1.8b and €5.9b, we discovered that the median CEO total compensation of that group was €1.1m. So it looks like Interparfums compensates Philippe Benacin in line with the median for the industry. Furthermore, Philippe Benacin directly owns €754k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	€504k	€480k	56%
Other	€391k	€360k	44%
Total Compensation	€895k	€840k	100%

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. Our data reveals that Interparfums allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Interparfums SA's Growth

Over the past three years, Interparfums SA has seen its earnings per share (EPS) grow by 53% per year. Its revenue is up 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Interparfums SA Been A Good Investment?

Interparfums SA has served shareholders reasonably well, with a total return of 25% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Interparfums that you should be aware of before investing.

Important note: Interparfums 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.