How Does Poxel's (EPA:POXEL) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Thomas Kuhn who has served as CEO of Poxel S.A. (EPA:POXEL) since 2009. This analysis will also assess whether Poxel pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Poxel

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

At the time of writing, our data shows that Poxel S.A. has a market capitalization of €201m, and reported total annual CEO compensation of €443k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of €230.1k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from €84m to €338m, the reported median CEO total compensation was €851k. Accordingly, Poxel pays its CEO under the industry median. What's more, Thomas Kuhn holds €11m 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. Although there is a difference in how total compensation is set, Poxel more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

Poxel S.A. has reduced its earnings per share by 9.7% a year over the last three years. It saw its revenue drop 69% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Poxel S.A. Been A Good Investment?

Poxel S.A. has generated a total shareholder return of 6.3% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Poxel pays its CEO lower than the norm for similar-sized companies belonging to the same industry. While we have not been overly impressed by shareholder returns, EPS growth has been negative over the last three years, a real headache for the company. It's tough for us to say that Thomas is earning a high compensation, but any bump in pay is unlikely at this stage since shareholders will likely hold off support until performance improves.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Poxel that investors should be aware of in a dynamic business environment.

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.

If you’re looking to trade Poxel, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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