It Looks Like Fnac Darty SA's (EPA:FNAC) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Fnac Darty to hold its Annual General Meeting on 28th of May
• Total pay for CEO Enrique Martinez includes €800.0k salary
• The overall pay is 343% above the industry average
• Fnac Darty's EPS declined by 40% over the past three years while total shareholder loss over the past three years was 24%

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Fnac Darty SA (EPA:FNAC) has not performed well recently and CEO Enrique Martinez will probably need to up their game. At the upcoming AGM on 28th of May, shareholders can hear from the board including their plans for turning around performance. 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Fnac Darty

Comparing Fnac Darty SA's CEO Compensation With The Industry

Our data indicates that Fnac Darty SA has a market capitalization of €908m, and total annual CEO compensation was reported as €4.2m for the year to December 2024. We note that's an increase of 20% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €800k.

On examining similar-sized companies in the French Specialty Retail industry with market capitalizations between €353m and €1.4b, we discovered that the median CEO total compensation of that group was €950k. Accordingly, our analysis reveals that Fnac Darty SA pays Enrique Martinez north of the industry median. Moreover, Enrique Martinez also holds €6.7m worth of Fnac Darty stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€800k	€750k	19%
Other	€3.4m	€2.8m	81%
Total Compensation	€4.2m	€3.5m	100%

On an industry level, roughly 57% of total compensation represents salary and 43% is other remuneration. It's interesting to note that Fnac Darty allocates a smaller portion of compensation to salary 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.

Fnac Darty SA's Growth

Fnac Darty SA has reduced its earnings per share by 40% a year over the last three years. It achieved revenue growth of 4.8% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Fnac Darty SA Been A Good Investment?

Since shareholders would have lost about 24% over three years, some Fnac Darty SA investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Fnac Darty that investors should look into moving forward.

Important note: Fnac Darty 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.