Here's Why We Think Aramis Group SAS' (EPA:ARAMI) CEO Compensation Looks Fair

Key Insights

• Aramis Group SAS to hold its Annual General Meeting on 4th of February
• CEO Guillaume Paoli's total compensation includes salary of €400.0k
• Total compensation is 55% below industry average
• Aramis Group SAS' three-year loss to shareholders was 38% while its EPS grew by 21% over the past three years

Shareholders may be wondering what CEO Guillaume Paoli plans to do to improve the less than great performance at Aramis Group SAS (EPA:ARAMI) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 4th of February. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Aramis Group SAS

How Does Total Compensation For Guillaume Paoli Compare With Other Companies In The Industry?

Our data indicates that Aramis Group SAS has a market capitalization of €631m, and total annual CEO compensation was reported as €493k for the year to September 2024. That's mostly flat as compared to the prior year's compensation. In particular, the salary of €400.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the French Specialty Retail industry with market capitalizations ranging from €384m to €1.5b, the reported median CEO total compensation was €1.1m. That is to say, Guillaume Paoli is paid under the industry median.

Component	2024	2023	Proportion (2024)
Salary	€400k	€400k	81%
Other	€93k	€94k	19%
Total Compensation	€493k	€494k	100%

Talking in terms of the industry, salary represented approximately 56% of total compensation out of all the companies we analyzed, while other remuneration made up 44% of the pie. According to our research, Aramis Group SAS has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

Aramis Group SAS' Growth

Over the past three years, Aramis Group SAS has seen its earnings per share (EPS) grow by 21% per year. It achieved revenue growth of 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Aramis Group SAS Been A Good Investment?

Few Aramis Group SAS shareholders would feel satisfied with the return of -38% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Aramis Group SAS that investors should look into moving forward.

Important note: Aramis Group SAS 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.