Why We Think Hoffmann Green Cement Technologies Societe anonyme's (EPA:ALHGR) CEO Compensation Is Not Excessive At All

Key Insights

• Hoffmann Green Cement Technologies Societe anonyme to hold its Annual General Meeting on 31st of May
• Salary of €132.0k is part of CEO Julien Blanchard's total remuneration
• The overall pay is 45% below the industry average
• Hoffmann Green Cement Technologies Societe anonyme's three-year loss to shareholders was 60% while its EPS was down 7.8% over the past three years

Shareholders may be wondering what CEO Julien Blanchard plans to do to improve the less than great performance at Hoffmann Green Cement Technologies Societe anonyme (EPA:ALHGR) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 31st of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Hoffmann Green Cement Technologies Societe anonyme

Comparing Hoffmann Green Cement Technologies Societe anonyme's CEO Compensation With The Industry

At the time of writing, our data shows that Hoffmann Green Cement Technologies Societe anonyme has a market capitalization of €173m, and reported total annual CEO compensation of €136k for the year to December 2023. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at €132.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the France Basic Materials industry with market caps ranging from €92m to €369m, we found that the median CEO total compensation was €247k. In other words, Hoffmann Green Cement Technologies Societe anonyme pays its CEO lower than the industry median. What's more, Julien Blanchard holds €55m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	€132k	€132k	97%
Other	€4.1k	€5.4k	3%
Total Compensation	€136k	€137k	100%

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. Hoffmann Green Cement Technologies Societe anonyme pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Hoffmann Green Cement Technologies Societe anonyme's Growth Numbers

Hoffmann Green Cement Technologies Societe anonyme has reduced its earnings per share by 7.8% a year over the last three years. Its revenue is up 172% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Hoffmann Green Cement Technologies Societe anonyme Been A Good Investment?

Few Hoffmann Green Cement Technologies Societe anonyme shareholders would feel satisfied with the return of -60% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Hoffmann Green Cement Technologies Societe anonyme pays its CEO a majority of compensation through a salary. The fact that shareholders are sitting on a loss is certainly disheartening. The fact that earnings growth has gone backwards could be a factor for the downward trend in the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Hoffmann Green Cement Technologies Societe anonyme that investors should look into moving forward.

Important note: Hoffmann Green Cement Technologies Societe anonyme is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.