Is ABIVAX Société Anonyme (EPA:ABVX) Excessively Paying Its CEO?

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In 2013 Hartmut Ehrlich was appointed CEO of ABIVAX Société Anonyme (EPA:ABVX). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for ABIVAX Société Anonyme

How Does Hartmut Ehrlich’s Compensation Compare With Similar Sized Companies?

Our data indicates that ABIVAX Société Anonyme is worth €85m, and total annual CEO compensation is €397k. (This is based on the year to December 2018). That’s a fairly small increase of 6.8% on year before. While we always look at total compensation first, we note that the salary component is less, at €268k. We took a group of companies with market capitalizations below €179m, and calculated the median CEO total compensation to be €148k.

It would therefore appear that ABIVAX Société Anonyme pays Hartmut Ehrlich more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at ABIVAX Société Anonyme has changed over time.

ENXTPA:ABVX CEO Compensation, June 19th 2019
ENXTPA:ABVX CEO Compensation, June 19th 2019

Is ABIVAX Société Anonyme Growing?

Over the last three years ABIVAX Société Anonyme has grown its earnings per share (EPS) by an average of 9.3% per year (using a line of best fit). It achieved revenue growth of 129% over the last year.

I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future.

Has ABIVAX Société Anonyme Been A Good Investment?

Boasting a total shareholder return of 46% over three years, ABIVAX Société Anonyme has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared the total CEO remuneration paid by ABIVAX Société Anonyme, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ABIVAX Société Anonyme.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.