The Compensation For Interparfums SA's (EPA:ITP) CEO Looks Deserved And Here's Why

Key Insights

• Interparfums will host its Annual General Meeting on 21st of April
• CEO Philippe Benacin's total compensation includes salary of €480.0k
• The overall pay is comparable to the industry average
• Interparfums' total shareholder return over the past three years was 189% while its EPS grew by 24% over the past three years

It would be hard to discount the role that CEO Philippe Benacin has played in delivering the impressive results at Interparfums SA (EPA:ITP) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 21st of April. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Interparfums

How Does Total Compensation For Philippe Benacin Compare With Other Companies In The Industry?

Our data indicates that Interparfums SA has a market capitalization of €4.3b, and total annual CEO compensation was reported as €840k for the year to December 2022. Notably, that's an increase of 36% over the year before. We note that the salary of €480.0k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the France Personal Products industry with market capitalizations ranging between €1.8b and €5.8b had a median total CEO compensation of €1.1m. This suggests that Interparfums remunerates its CEO largely in line with the industry average. What's more, Philippe Benacin holds €534k worth of shares in the company in their own name.

Component	2022	2021	Proportion (2022)
Salary	€480k	€468k	57%
Other	€360k	€151k	43%
Total Compensation	€840k	€619k	100%

Talking in terms of the industry, salary represented approximately 57% of total compensation out of all the companies we analyzed, while other remuneration made up 43% of the pie. 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 24% per year. It achieved revenue growth of 26% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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?

Most shareholders would probably be pleased with Interparfums SA for providing a total return of 189% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

Shareholders may want to check for free if Interparfums insiders are buying or selling shares.

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.