We Think Métropole Télévision S.A.'s (EPA:MMT) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Métropole Télévision's Annual General Meeting to take place on 23rd of April
• CEO Nicolas de Tavernost Abel's total compensation includes salary of €1.00m
• The overall pay is comparable to the industry average
• Over the past three years, Métropole Télévision's EPS fell by 5.4% and over the past three years, the total loss to shareholders 4.3%

Shareholders will probably not be too impressed with the underwhelming results at Métropole Télévision S.A. (EPA:MMT) recently. At the upcoming AGM on 23rd of April, 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. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Métropole Télévision

Comparing Métropole Télévision S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Métropole Télévision S.A. has a market capitalization of €1.8b, and reported total annual CEO compensation of €1.7m for the year to December 2023. That's a notable decrease of 14% on last year. We note that the salary of €1.00m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the French Media industry with market capitalizations ranging from €941m to €3.0b, the reported median CEO total compensation was €2.2m. From this we gather that Nicolas de Tavernost Abel is paid around the median for CEOs in the industry. What's more, Nicolas de Tavernost Abel holds €7.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 39% of total compensation out of all the companies we analyzed, while other remuneration made up 61% of the pie. Métropole Télévision pays out 57% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Métropole Télévision S.A.'s Growth Numbers

Over the last three years, Métropole Télévision S.A. has shrunk its earnings per share by 5.4% per year. In the last year, its revenue is down 2.9%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Métropole Télévision S.A. Been A Good Investment?

With a three year total loss of 4.3% for the shareholders, Métropole Télévision S.A. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Métropole Télévision (1 is potentially serious!) that you should be aware of before investing here.

Important note: Métropole Télévision 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.