Here's Why Gecina SA's (EPA:GFC) CEO May Not Expect A Pay Rise This Year

The disappointing performance at Gecina SA (EPA:GFC) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 22 April 2021. From our analysis below, we think CEO compensation looks appropriate for now.

View our latest analysis for Gecina

Comparing Gecina SA's CEO Compensation With the industry

At the time of writing, our data shows that Gecina SA has a market capitalization of €8.9b, and reported total annual CEO compensation of €1.6m for the year to December 2020. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €650k.

On comparing similar companies in the industry with market capitalizations above €6.7b, we found that the median total CEO compensation was €5.8m. Accordingly, Gecina pays its CEO under the industry median. What's more, Meka Brunel holds €3.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	€650k	€650k	40%
Other	€980k	€984k	60%
Total Compensation	€1.6m	€1.6m	100%

Speaking on an industry level, nearly 46% of total compensation represents salary, while the remainder of 54% is other remuneration. In Gecina's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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 Gecina SA's Growth Numbers

Over the last three years, Gecina SA has shrunk its earnings per share by 58% per year. In the last year, its revenue is down 3.6%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Gecina SA Been A Good Investment?

Given the total shareholder loss of 2.4% over three years, many shareholders in Gecina SA are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 3 warning signs (and 1 which is concerning) in Gecina we think you should know about.

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.

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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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