What We Learned About AXA's (EPA:CS) CEO Compensation

Simply Wall St
December 03, 2020

Thomas Buberl has been the CEO of AXA SA (EPA:CS) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for AXA

How Does Total Compensation For Thomas Buberl Compare With Other Companies In The Industry?

According to our data, AXA SA has a market capitalization of €47b, and paid its CEO total annual compensation worth €5.1m over the year to December 2019. That is, the compensation was roughly the same as last year. Notably, the salary which is €3.06m, represents most of the total compensation being paid.

On comparing similar companies in the industry with market capitalizations above €6.6b, we found that the median total CEO compensation was €4.2m. From this we gather that Thomas Buberl is paid around the median for CEOs in the industry. Moreover, Thomas Buberl also holds €6.4m worth of AXA stock directly under their own name.

Component20192018Proportion (2019)
Salary €3.1m €3.2m 60%
Other €2.0m €1.8m 40%
Total Compensation€5.1m €5.0m100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. AXA is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ENXTPA:CS CEO Compensation December 3rd 2020

A Look at AXA SA's Growth Numbers

Over the last three years, AXA SA has shrunk its earnings per share by 21% per year. Its revenue is down 11% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 AXA SA Been A Good Investment?

Given the total shareholder loss of 8.4% over three years, many shareholders in AXA SA are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Thomas is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for AXA that you should be aware of before investing.

Switching gears from AXA, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. 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.
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