How Much Is Atari SA (EPA:ATA) Paying Its CEO?

This article will reflect on the compensation paid to Frédéric Chesnais who has served as CEO of Atari SA (EPA:ATA) since 2013. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Atari

How Does Total Compensation For Frédéric Chesnais Compare With Other Companies In The Industry?

At the time of writing, our data shows that Atari SA has a market capitalization of €111m, and reported total annual CEO compensation of €52k for the year to March 2020. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €12k.

On comparing similar-sized companies in the industry with market capitalizations below €166m, we found that the median total CEO compensation was €178k. That is to say, Frédéric Chesnais is paid under the industry median. What's more, Frédéric Chesnais holds €692k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. Atari sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Atari SA's Growth

Over the last three years, Atari SA has shrunk its earnings per share by 38% per year. It achieved revenue growth of 17% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Atari SA Been A Good Investment?

Given the total shareholder loss of 18% over three years, many shareholders in Atari SA are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Atari SA is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But Atari has recorded negative shareholder returns and EPS growth over the last three years. On the flip side, recent revenue growth has been positive. Though we believe Frédéric is modestly compensated, shareholders might want to see positive shareholder returns before agreeing compensation should be raised.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Atari you should be aware of, and 1 of them is concerning.

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. 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.
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