Should You Worry About COFACE SA’s (EPA:COFA) CEO Pay Cheque?

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Xavier Durand became the CEO of COFACE SA (EPA:COFA) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for COFACE

How Does Xavier Durand’s Compensation Compare With Similar Sized Companies?

Our data indicates that COFACE SA is worth €1.3b, and total annual CEO compensation is €2.1m. (This figure is for the year to December 2018). Notably, that’s an increase of 14% over the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €575k. We looked at a group of companies with market capitalizations from €895m to €2.9b, and the median CEO total compensation was €978k.

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.

ENXTPA:COFA CEO Compensation, May 29th 2019
ENXTPA:COFA CEO Compensation, May 29th 2019

Is COFACE SA Growing?

Over the last three years COFACE SA has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). Its revenue is up 3.6% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has COFACE SA Been A Good Investment?

Boasting a total shareholder return of 43% over three years, COFACE SA has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

We compared the total CEO remuneration paid by COFACE SA, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling COFACE (free visualization of insider trades).

Important note: COFACE may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.