How Much Is Vetoquinol SA (EPA:VETO) Paying Its CEO?

This article will reflect on the compensation paid to Matthieu Frechin who has served as CEO of Vetoquinol SA (EPA:VETO) since 2010. This analysis will also assess whether Vetoquinol pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Vetoquinol

How Does Total Compensation For Matthieu Frechin Compare With Other Companies In The Industry?

At the time of writing, our data shows that Vetoquinol SA has a market capitalization of €977m, and reported total annual CEO compensation of €460k for the year to December 2019. This means that the compensation hasn't changed much from last year. Notably, the salary which is €271.1k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from €330m to €1.3b, we found that the median CEO total compensation was €839k. Accordingly, Vetoquinol pays its CEO under the industry median.

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. Vetoquinol is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Vetoquinol SA's Growth

Over the past three years, Vetoquinol SA has seen its earnings per share (EPS) grow by 2.3% per year. Its revenue is up 9.2% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Vetoquinol SA Been A Good Investment?

We think that the total shareholder return of 59%, over three years, would leave most Vetoquinol SA shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As we noted earlier, Vetoquinol pays its CEO lower than the norm for similar-sized companies belonging to the same industry. In contrast, shareholder returns have been excellent over the past three years, and that’s certainly a promising trend to keep an eye on. Considering this fine result for investors, we believe CEO compensation to be apt.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Vetoquinol (free visualization of insider trades).

Switching gears from Vetoquinol, 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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