Is Makheia Group Société Anonyme’s (EPA:ALMAK) CEO Pay Fair?

Édouard Rencker is the CEO of Makheia Group Société Anonyme (EPA:ALMAK). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Makheia Group Société Anonyme

How Does Édouard Rencker’s Compensation Compare With Similar Sized Companies?

Our data indicates that Makheia Group Société Anonyme is worth €10m, and total annual CEO compensation is €289k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at €270k. We took a group of companies with market capitalizations below €178m, and calculated the median CEO total compensation to be €132k.

As you can see, Édouard Rencker is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Makheia Group Société Anonyme is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Makheia Group Société Anonyme has changed from year to year.

ENXTPA:ALMAK CEO Compensation, April 9th 2019
ENXTPA:ALMAK CEO Compensation, April 9th 2019

Is Makheia Group Société Anonyme Growing?

Makheia Group Société Anonyme has reduced its earnings per share by an average of 65% a year, over the last three years (measured with a line of best fit). Its revenue is down -5.7% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Makheia Group Société Anonyme Been A Good Investment?

Given the total loss of 46% over three years, many shareholders in Makheia Group Société Anonyme are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We examined the amount Makheia Group Société Anonyme pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying Makheia Group Société Anonyme shares with their own money (free access).

Important note: Makheia Group Société Anonyme may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.