Judith Greciet became the CEO of Onxeo SA (EPA:ALONX) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Onxeo
Comparing Onxeo SA's CEO Compensation With the industry
According to our data, Onxeo SA has a market capitalization of €53m, and paid its CEO total annual compensation worth €455k over the year to December 2019. Notably, that's a decrease of 17% over the year before. Notably, the salary which is €323.1k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below €164m, we found that the median total CEO compensation was €658k. Accordingly, Onxeo pays its CEO under the industry median. Moreover, Judith Greciet also holds €159k worth of Onxeo stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | €323k | €317k | 71% |
Other | €132k | €234k | 29% |
Total Compensation | €455k | €551k | 100% |
Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. According to our research, Onxeo has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Onxeo SA's Growth
Onxeo SA's earnings per share (EPS) grew 39% per year over the last three years. Its revenue is down 36% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Onxeo SA Been A Good Investment?
Given the total shareholder loss of 38% over three years, many shareholders in Onxeo SA are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we noted earlier, Onxeo pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Onxeo that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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About ENXTPA:ALVIO
Valerio Therapeutics Société anonyme
A clinical-stage biotechnology company, designs and develops novel and first-in-class DNA-decoy therapies targeting proteins in tumors and inflammatory disease processes.
Moderate and overvalued.