Reworld Media Société Anonyme's (EPA:ALREW) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Reworld Media Société Anonyme to hold its Annual General Meeting on 26th of June
• Total pay for CEO Pascal Chevalier includes €800.0k salary
• The overall pay is 86% above the industry average
• Over the past three years, Reworld Media Société Anonyme's EPS fell by 6.2% and over the past three years, the total loss to shareholders 75%

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Reworld Media Société Anonyme (EPA:ALREW) has not performed well recently and CEO Pascal Chevalier will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 26th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Reworld Media Société Anonyme

How Does Total Compensation For Pascal Chevalier Compare With Other Companies In The Industry?

Our data indicates that Reworld Media Société Anonyme has a market capitalization of €82m, and total annual CEO compensation was reported as €916k for the year to December 2024. Notably, that's a decrease of 9.8% over the year before. Notably, the salary which is €800.0k, represents most of the total compensation being paid.

For comparison, other companies in the French Media industry with market capitalizations below €174m, reported a median total CEO compensation of €491k. Accordingly, our analysis reveals that Reworld Media Société Anonyme pays Pascal Chevalier north of the industry median. Moreover, Pascal Chevalier also holds €16m worth of Reworld Media Société Anonyme stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. Reworld Media Société Anonyme is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 Reworld Media Société Anonyme's Growth Numbers

Over the last three years, Reworld Media Société Anonyme has shrunk its earnings per share by 6.2% per year. In the last year, its revenue is down 2.7%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Reworld Media Société Anonyme Been A Good Investment?

Few Reworld Media Société Anonyme shareholders would feel satisfied with the return of -75% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. 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 an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which makes us a bit uncomfortable) in Reworld Media Société Anonyme we think you should know about.

Important note: Reworld Media Société 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.

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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.