Shareholders Will Probably Not Have Any Issues With Genfit S.A.'s (EPA:GNFT) CEO Compensation

Key Insights

• Genfit's Annual General Meeting to take place on 17th of June
• Salary of €405.6k is part of CEO M. Prigent's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Genfit's EPS fell by 73% and over the past three years, the total shareholder return was 17%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Performance at Genfit S.A. (EPA:GNFT) has been reasonably good and CEO M. Prigent has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 17th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Genfit

Comparing Genfit S.A.'s CEO Compensation With The Industry

According to our data, Genfit S.A. has a market capitalization of €190m, and paid its CEO total annual compensation worth €682k over the year to December 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is €405.6k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the French Biotechs industry with market capitalizations ranging between €88m and €350m had a median total CEO compensation of €700k. From this we gather that M. Prigent is paid around the median for CEOs in the industry. What's more, M. Prigent holds €117k worth of shares in the company in their own name.

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. There isn't a significant difference between Genfit and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Genfit S.A.'s Growth Numbers

Genfit S.A. has reduced its earnings per share by 73% a year over the last three years. Its revenue is up 105% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Genfit S.A. Been A Good Investment?

Genfit S.A. has served shareholders reasonably well, with a total return of 17% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Although the company has performed relatively well, we still think there are some areas that could be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Genfit that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.