Jesus Martin-Garcia became the CEO of GeNeuro SA (EPA:GNRO) in 2016, 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 assess whether GeNeuro pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing GeNeuro SA's CEO Compensation With the industry
According to our data, GeNeuro SA has a market capitalization of €62m, and paid its CEO total annual compensation worth €735k over the year to December 2019. That's just a smallish increase of 5.9% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €360k.
In comparison with other companies in the industry with market capitalizations under €170m, the reported median total CEO compensation was €791k. This suggests that GeNeuro remunerates its CEO largely in line with the industry average.
On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. There isn't a significant difference between GeNeuro and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at GeNeuro SA's Growth Numbers
GeNeuro SA saw earnings per share stay pretty flat over the last three years. In the last year, the company lost virtually all of its revenue.
We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. 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. 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 GeNeuro SA Been A Good Investment?
With a three year total loss of 40% for the shareholders, GeNeuro SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, GeNeuro SA is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat EPS growth. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for GeNeuro (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the 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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