How Should Investors React To Nanobiotix's (EPA:NANO) CEO Pay?

This article will reflect on the compensation paid to Laurent Levy who has served as CEO of Nanobiotix S.A. (EPA:NANO) since 2003. This analysis will also assess whether Nanobiotix pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Nanobiotix

Comparing Nanobiotix S.A.'s CEO Compensation With the industry

Our data indicates that Nanobiotix S.A. has a market capitalization of €492m, and total annual CEO compensation was reported as €2.5m for the year to December 2019. We note that's an increase of 75% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €330k.

On examining similar-sized companies in the industry with market capitalizations between €327m and €1.3b, we discovered that the median CEO total compensation of that group was €803k. This suggests that Laurent Levy is paid more than the median for the industry. Moreover, Laurent Levy also holds €12m worth of Nanobiotix stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Nanobiotix 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.

Nanobiotix S.A.'s Growth

Over the last three years, Nanobiotix S.A. has shrunk its earnings per share by 18% per year. It saw its revenue drop 34% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Nanobiotix S.A. Been A Good Investment?

With a total shareholder return of 9.3% over three years, Nanobiotix S.A. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we noted earlier, Nanobiotix pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Meanwhile, EPS has not been growing sufficiently to impress us, over the last three years. While shareholder returns are acceptable, they don't delight. So you can understand why we do not think CEO compensation is particularly modest!

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 5 warning signs for Nanobiotix (2 can't be ignored!) that you should be aware of before investing here.

Switching gears from Nanobiotix, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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