Here's Why We Think Valbiotis SA's (EPA:ALVAL) CEO Compensation Looks Fair

Key Insights

• Valbiotis to hold its Annual General Meeting on 18th of April
• CEO Sebastien Peltier's total compensation includes salary of €180.0k
• The overall pay is 51% below the industry average
• Valbiotis' three-year loss to shareholders was 85% while its EPS grew by 22% over the past three years

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The performance at Valbiotis SA (EPA:ALVAL) has been rather lacklustre of late and shareholders may be wondering what CEO Sebastien Peltier is planning to do about this. At the next AGM coming up on 18th of April, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Valbiotis

Comparing Valbiotis SA's CEO Compensation With The Industry

At the time of writing, our data shows that Valbiotis SA has a market capitalization of €16m, and reported total annual CEO compensation of €242k for the year to December 2024. That's a notable decrease of 20% on last year. Notably, the salary which is €180.0k, represents most of the total compensation being paid.

In comparison with other companies in the French Biotechs industry with market capitalizations under €179m, the reported median total CEO compensation was €492k. This suggests that Sebastien Peltier is paid below the industry median. Moreover, Sebastien Peltier also holds €629k worth of Valbiotis stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€180k	€180k	74%
Other	€62k	€121k	26%
Total Compensation	€242k	€301k	100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. Valbiotis pays out 74% 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.

Valbiotis SA's Growth

Valbiotis SA has seen its earnings per share (EPS) increase by 22% a year over the past three years. In the last year, its revenue is down 96%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has Valbiotis SA Been A Good Investment?

Few Valbiotis SA shareholders would feel satisfied with the return of -85% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

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 4 warning signs for Valbiotis you should be aware of, and 1 of them can't be ignored.

Important note: Valbiotis 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.