Here's Why Robertet SA's (EPA:RBT) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Robertet to hold its Annual General Meeting on 12th of June
• Total pay for CEO Jerome Bruhat includes €500.0k salary
• The overall pay is 33% below the industry average
• Robertet's EPS grew by 18% over the past three years while total shareholder loss over the past three years was 10%

Shareholders may be wondering what CEO Jerome Bruhat plans to do to improve the less than great performance at Robertet SA (EPA:RBT) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 12th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Robertet

How Does Total Compensation For Jerome Bruhat Compare With Other Companies In The Industry?

Our data indicates that Robertet SA has a market capitalization of €1.8b, and total annual CEO compensation was reported as €1.0m for the year to December 2023. Notably, that's a decrease of 42% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €500k.

On comparing similar companies from the French Chemicals industry with market caps ranging from €920m to €2.9b, we found that the median CEO total compensation was €1.5m. This suggests that Jerome Bruhat is paid below the industry median.

Component	2023	2022	Proportion (2023)
Salary	€500k	€458k	49%
Other	€514k	€1.3m	51%
Total Compensation	€1.0m	€1.8m	100%

On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. Robertet pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Robertet SA's Growth Numbers

Robertet SA has seen its earnings per share (EPS) increase by 18% a year over the past three years. In the last year, its revenue is up 2.6%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Robertet SA Been A Good Investment?

With a three year total loss of 10% for the shareholders, Robertet SA would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The uninspiring share price returns contrasts with the strong EPS growth, suggesting that there may be other factors at play causing it to diverge from fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

So you may want to check if insiders are buying Robertet shares with their own money (free access).

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.