Key Insights
- Keyrus' Annual General Meeting to take place on 18th of June
- Total pay for CEO Eric Cohen includes €420.0k salary
- Total compensation is 238% above industry average
- Keyrus' total shareholder return over the past three years was 87% while its EPS was down 42% over the past three years
The share price of Keyrus S.A. (EPA:ALKEY) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. Some of these issues will occupy shareholders' minds as the AGM rolls around on 18th of June. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.
View our latest analysis for Keyrus
Comparing Keyrus S.A.'s CEO Compensation With The Industry
At the time of writing, our data shows that Keyrus S.A. has a market capitalization of €120m, and reported total annual CEO compensation of €927k for the year to December 2024. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at €420k.
For comparison, other companies in the French IT industry with market capitalizations below €174m, reported a median total CEO compensation of €274k. Accordingly, our analysis reveals that Keyrus S.A. pays Eric Cohen north of the industry median. What's more, Eric Cohen holds €93m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €420k | €420k | 45% |
| Other | €507k | €516k | 55% |
| Total Compensation | €927k | €936k | 100% |
On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Keyrus sets aside a smaller share of compensation for salary, in comparison to the overall 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 Keyrus S.A.'s Growth Numbers
Over the last three years, Keyrus S.A. has shrunk its earnings per share by 42% per year. It saw its revenue drop 4.3% over the last year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. 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 Keyrus S.A. Been A Good Investment?
Boasting a total shareholder return of 87% over three years, Keyrus S.A. 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.
To Conclude...
Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Keyrus (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Keyrus, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Valuation is complex, but we're here to simplify it.
Discover if Keyrus might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.