Here's Why Shareholders Should Examine Imerys S.A.'s (EPA:NK) CEO Compensation Package More Closely

Key Insights

• Imerys will host its Annual General Meeting on 14th of May
• CEO Alessandro Dazza's total compensation includes salary of €920.0k
• Total compensation is 126% above industry average
• Imerys' three-year loss to shareholders was 5.7% while its EPS was down 37% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Imerys S.A. (EPA:NK) recently. At the upcoming AGM on 14th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Imerys

Comparing Imerys S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Imerys S.A. has a market capitalization of €3.0b, and reported total annual CEO compensation of €4.4m for the year to December 2023. Notably, that's an increase of 18% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at €920k.

On comparing similar companies from the France Basic Materials industry with market caps ranging from €1.9b to €6.0b, we found that the median CEO total compensation was €1.9m. Accordingly, our analysis reveals that Imerys S.A. pays Alessandro Dazza north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	€920k	€800k	21%
Other	€3.4m	€2.9m	79%
Total Compensation	€4.4m	€3.7m	100%

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. Imerys pays a modest slice of remuneration through salary, as compared 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.

A Look at Imerys S.A.'s Growth Numbers

Over the last three years, Imerys S.A. has shrunk its earnings per share by 37% per year. Its revenue is down 13% 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 Imerys S.A. Been A Good Investment?

Given the total shareholder loss of 5.7% over three years, many shareholders in Imerys S.A. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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. We've identified 3 warning signs for Imerys that investors should be aware of in a dynamic business environment.

Switching gears from Imerys, 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. 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.