We Think Shareholders May Want To Consider A Review Of Société Centrale des Bois et des Scieries de la Manche S.A.'s (EPA:CBSM) CEO Compensation Package

Key Insights

• Société Centrale des Bois et des Scieries de la Manche will host its Annual General Meeting on 18th of December
• Total pay for CEO Jacques Lacroix includes €291.6k salary
• The overall pay is comparable to the industry average
• Société Centrale des Bois et des Scieries de la Manche's EPS declined by 74% over the past three years while total shareholder loss over the past three years was 8.0%

The results at Société Centrale des Bois et des Scieries de la Manche S.A. (EPA:CBSM) have been quite disappointing recently and CEO Jacques Lacroix bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 18th of December. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Société Centrale des Bois et des Scieries de la Manche

How Does Total Compensation For Jacques Lacroix Compare With Other Companies In The Industry?

At the time of writing, our data shows that Société Centrale des Bois et des Scieries de la Manche S.A. has a market capitalization of €119m, and reported total annual CEO compensation of €298k for the year to June 2024. This was the same amount the CEO received in the prior year. In particular, the salary of €291.6k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the France REITs industry with market capitalizations below €190m, reported a median total CEO compensation of €301k. So it looks like Société Centrale des Bois et des Scieries de la Manche compensates Jacques Lacroix in line with the median for the industry. Furthermore, Jacques Lacroix directly owns €2.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2024	Proportion (2024)
Salary	€292k	€292k	98%
Other	€6.0k	€6.0k	2%
Total Compensation	€298k	€298k	100%

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Société Centrale des Bois et des Scieries de la Manche has gone down a largely traditional route, paying Jacques Lacroix a high salary, giving it preference over non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Société Centrale des Bois et des Scieries de la Manche S.A.'s Growth Numbers

Over the last three years, Société Centrale des Bois et des Scieries de la Manche S.A. has shrunk its earnings per share by 74% per year. Its revenue is up 8.2% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Société Centrale des Bois et des Scieries de la Manche S.A. Been A Good Investment?

Given the total shareholder loss of 8.0% over three years, many shareholders in Société Centrale des Bois et des Scieries de la Manche S.A. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Société Centrale des Bois et des Scieries de la Manche pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which are concerning) in Société Centrale des Bois et des Scieries de la Manche we think you should know about.

Important note: Société Centrale des Bois et des Scieries de la Manche 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.