We Think Shareholders Are Less Likely To Approve A Large Pay Rise For DBV Technologies S.A.'s (EPA:DBV) CEO For Now

Key Insights

• DBV Technologies will host its Annual General Meeting on 16th of May
• Total pay for CEO Daniel Tassé includes US$600.0k salary
• Total compensation is 463% above industry average
• DBV Technologies' three-year loss to shareholders was 88% while its EPS grew by 40% over the past three years

The underwhelming share price performance of DBV Technologies S.A. (EPA:DBV) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 16th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for DBV Technologies

Comparing DBV Technologies S.A.'s CEO Compensation With The Industry

Our data indicates that DBV Technologies S.A. has a market capitalization of €116m, and total annual CEO compensation was reported as US$2.4m for the year to December 2023. That's a notable decrease of 18% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$600k.

On comparing similar-sized companies in the French Biotechs industry with market capitalizations below €185m, we found that the median total CEO compensation was US$427k. Hence, we can conclude that Daniel Tassé is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	US$600k	US$600k	25%
Other	US$1.8m	US$2.3m	75%
Total Compensation	US$2.4m	US$2.9m	100%

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. DBV Technologies pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

DBV Technologies S.A.'s Growth

DBV Technologies S.A.'s earnings per share (EPS) grew 40% per year over the last three years. Its revenue is up 233% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has DBV Technologies S.A. Been A Good Investment?

Few DBV Technologies S.A. shareholders would feel satisfied with the return of -88% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which is a bit unpleasant) in DBV Technologies we think you should know about.

Important note: DBV Technologies 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.