Xavier Durand has been the CEO of COFACE SA (EPA:COFA) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Xavier Durand’s Compensation Compare With Similar Sized Companies?
According to our data, COFACE SA has a market capitalization of €1.2b, and pays its CEO total annual compensation worth €1.8m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €575k. We examined companies with market caps from €879m to €2.8b, and discovered that the median CEO compensation of that group was €1.0m.
As you can see, Xavier Durand is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean COFACE SA is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at COFACE, below.
Is COFACE SA Growing?
COFACE SA has increased its earnings per share (EPS) by an average of 8.6% a year, over the last three years (using a line of best fit). Its revenue is up 1.7% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has COFACE SA Been A Good Investment?
Most shareholders would probably be pleased with COFACE SA for providing a total return of 33% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at COFACE SA with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. Shareholders may want to check for free if COFACE insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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