How Is OSE Immunotherapeutics' (EPA:OSE) CEO Paid Relative To Peers?

This article will reflect on the compensation paid to Alexis Peyroles who has served as CEO of OSE Immunotherapeutics SA (EPA:OSE) since 2018. This analysis will also assess whether OSE Immunotherapeutics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for OSE Immunotherapeutics

How Does Total Compensation For Alexis Peyroles Compare With Other Companies In The Industry?

Our data indicates that OSE Immunotherapeutics SA has a market capitalization of €114m, and total annual CEO compensation was reported as €1.0m for the year to December 2019. That's a notable increase of 22% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €300k.

On comparing similar-sized companies in the industry with market capitalizations below €167m, we found that the median total CEO compensation was €623k. This suggests that Alexis Peyroles is paid more than the median for the industry. What's more, Alexis Peyroles holds €3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. It's interesting to note that OSE Immunotherapeutics allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

OSE Immunotherapeutics SA's Growth

OSE Immunotherapeutics SA's earnings per share (EPS) grew 14% per year over the last three years. In the last year, its revenue is down 20%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 OSE Immunotherapeutics SA Been A Good Investment?

Boasting a total shareholder return of 99% over three years, OSE Immunotherapeutics SA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, OSE Immunotherapeutics SA is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Alexis deserves a raise!

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for OSE Immunotherapeutics that investors should think about before committing capital to this stock.

Important note: OSE Immunotherapeutics 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. 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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