L'Air Liquide S.A.'s (EPA:AI) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• L'Air Liquide's Annual General Meeting to take place on 6th of May
• CEO Francois Jackow's total compensation includes salary of €1.21m
• The overall pay is comparable to the industry average
• Over the past three years, L'Air Liquide's EPS grew by 8.5% and over the past three years, the total shareholder return was 39%

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CEO Francois Jackow has done a decent job of delivering relatively good performance at L'Air Liquide S.A. (EPA:AI) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 6th of May. We present our case of why we think CEO compensation looks fair.

See our latest analysis for L'Air Liquide

How Does Total Compensation For Francois Jackow Compare With Other Companies In The Industry?

Our data indicates that L'Air Liquide S.A. has a market capitalization of €103b, and total annual CEO compensation was reported as €4.7m for the year to December 2024. That's a notable increase of 9.7% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.2m.

For comparison, other companies in the French Chemicals industry with market capitalizations above €7.0b, reported a median total CEO compensation of €5.1m. From this we gather that Francois Jackow is paid around the median for CEOs in the industry. What's more, Francois Jackow holds €12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	€1.2m	€1.1m	26%
Other	€3.4m	€3.1m	74%
Total Compensation	€4.7m	€4.2m	100%

On an industry level, around 41% of total compensation represents salary and 59% is other remuneration. L'Air Liquide pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at L'Air Liquide S.A.'s Growth Numbers

Over the past three years, L'Air Liquide S.A. has seen its earnings per share (EPS) grow by 8.5% per year. In the last year, its revenue is down 2.0%.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has L'Air Liquide S.A. Been A Good Investment?

Most shareholders would probably be pleased with L'Air Liquide S.A. for providing a total return of 39% 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.

In Summary...

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

Shareholders may want to check for free if L'Air Liquide 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.