Is Groupe Capelli's (EPA:CAPLI) CEO Pay Justified?

Simply Wall St

Christophe Capelli is the CEO of Groupe Capelli (EPA:CAPLI). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Groupe Capelli

How Does Christophe Capelli's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Groupe Capelli has a market cap of €73m, and is paying total annual CEO compensation of €894k. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at €188k. We examined a group of similar sized companies, with market capitalizations of below €179m. The median CEO total compensation in that group is €132k.

It would therefore appear that Groupe Capelli pays Christophe Capelli more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Groupe Capelli has changed from year to year.

ENXTPA:CAPLI CEO Compensation, April 3rd 2019

Is Groupe Capelli Growing?

On average over the last three years, Groupe Capelli has grown earnings per share (EPS) by 33% each year (using a line of best fit). In the last year, its revenue is up 31%.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Groupe Capelli Been A Good Investment?

Boasting a total shareholder return of 96% over three years, Groupe Capelli has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We compared the total CEO remuneration paid by Groupe Capelli, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Groupe Capelli shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.