How Should Investors Feel About Fiducial Real Estate SA’s (EPA:ORIA) CEO Pay?

Bertrand Cote is the CEO of Fiducial Real Estate SA (EPA:ORIA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Fiducial Real Estate

How Does Bertrand Cote’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Fiducial Real Estate SA has a market cap of €427m, and is paying total annual CEO compensation of €78k. (This figure is for the year to September 2017). Notably, the salary of €78k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from €177m to €708m, and the median CEO total compensation was €333k.

A first glance this seems like a real positive for shareholders, since Bertrand Cote is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Fiducial Real Estate has changed over time.

ENXTPA:ORIA CEO Compensation, March 15th 2019
ENXTPA:ORIA CEO Compensation, March 15th 2019

Is Fiducial Real Estate SA Growing?

Fiducial Real Estate SA saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. Its revenue is up 4.9% over last year.

In the last three years the company has failed to grow earnings per s. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Fiducial Real Estate SA Been A Good Investment?

Boasting a total shareholder return of 38% over three years, Fiducial Real Estate SA has done well by shareholders. 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…

It appears that Fiducial Real Estate SA remunerates its CEO below most similar sized companies.

Bertrand Cote is paid less than CEOs of similar size companies. While the company isn’t growing on our analysis, shareholder returns have been good in recent years. We would like to see EPS growth, but in our view it seems the CEO is remunerated reasonably. Whatever your view on compensation, you might want to check if insiders are buying or selling Fiducial Real Estate shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.