Increases to CEO Compensation Might Be Put On Hold For Now at AXA SA (EPA:CS)

Key Insights

• AXA to hold its Annual General Meeting on 23rd of April
• CEO Thomas Buberl's total compensation includes salary of €1.65m
• The overall pay is 50% above the industry average
• AXA's EPS grew by 36% over the past three years while total shareholder return over the past three years was 76%

CEO Thomas Buberl has done a decent job of delivering relatively good performance at AXA SA (EPA:CS) recently. As shareholders go into the upcoming AGM on 23rd of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for AXA

Comparing AXA SA's CEO Compensation With The Industry

Our data indicates that AXA SA has a market capitalization of €74b, and total annual CEO compensation was reported as €5.9m for the year to December 2023. That's a notable increase of 23% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €1.7m.

On comparing similar companies in the France Insurance industry with market capitalizations above €7.5b, we found that the median total CEO compensation was €3.9m. Accordingly, our analysis reveals that AXA SA pays Thomas Buberl north of the industry median. Furthermore, Thomas Buberl directly owns €43m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	€1.7m	€1.6m	28%
Other	€4.2m	€3.2m	72%
Total Compensation	€5.9m	€4.8m	100%

Speaking on an industry level, nearly 41% of total compensation represents salary, while the remainder of 59% is other remuneration. In AXA's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

AXA SA's Growth

AXA SA has seen its earnings per share (EPS) increase by 36% a year over the past three years. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has AXA SA Been A Good Investment?

Most shareholders would probably be pleased with AXA SA for providing a total return of 76% over three years. 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.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for AXA that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.