A Quick Analysis On GenSight Biologics' (EPA:SIGHT) CEO Salary

This article will reflect on the compensation paid to Bernard Gilly who has served as CEO of GenSight Biologics S.A. (EPA:SIGHT) since 2012. This analysis will also assess whether GenSight Biologics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for GenSight Biologics

How Does Total Compensation For Bernard Gilly Compare With Other Companies In The Industry?

At the time of writing, our data shows that GenSight Biologics S.A. has a market capitalization of €275m, and reported total annual CEO compensation of €912k for the year to December 2019. We note that's an increase of 45% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €365k.

In comparison with other companies in the industry with market capitalizations ranging from €165m to €661m, the reported median CEO total compensation was €791k. So it looks like GenSight Biologics compensates Bernard Gilly in line with the median for the industry. Moreover, Bernard Gilly also holds €5.8m worth of GenSight Biologics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. GenSight Biologics pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at GenSight Biologics S.A.'s Growth Numbers

GenSight Biologics S.A. has seen its earnings per share (EPS) increase by 1.8% a year over the past three years. Its revenue is up 20% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has GenSight Biologics S.A. Been A Good Investment?

GenSight Biologics S.A. has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we noted earlier, GenSight Biologics pays its CEO in line with similar-sized companies belonging to the same industry. However, EPS and total shareholder return are solid yet uninspiring. So, although the CEO compensation seems reasonable, shareholders might want to see some further progress before they agree that Bernard should get a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which shouldn't be ignored) in GenSight Biologics we think you should know about.

Important note: GenSight Biologics 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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