Shareholders Will Probably Hold Off On Increasing Aubay Société Anonyme's (EPA:AUB) CEO Compensation For The Time Being

Key Insights

• Aubay Société Anonyme to hold its Annual General Meeting on 6th of May
• Total pay for CEO Philippe Rabasse includes €234.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Aubay Société Anonyme's EPS grew by 4.2% and over the past three years, the total loss to shareholders 11%

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As many shareholders of Aubay Société Anonyme (EPA:AUB) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 6th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Aubay Société Anonyme

Comparing Aubay Société Anonyme's CEO Compensation With The Industry

At the time of writing, our data shows that Aubay Société Anonyme has a market capitalization of €570m, and reported total annual CEO compensation of €362k for the year to December 2024. That's a notable decrease of 36% on last year. We note that the salary portion, which stands at €234.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the French IT industry with market capitalizations ranging from €350m to €1.4b, the reported median CEO total compensation was €482k. This suggests that Aubay Société Anonyme remunerates its CEO largely in line with the industry average. Moreover, Philippe Rabasse also holds €83m worth of Aubay Société Anonyme 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	€234k	€234k	65%
Other	€128k	€330k	35%
Total Compensation	€362k	€564k	100%

Speaking on an industry level, nearly 65% of total compensation represents salary, while the remainder of 35% is other remuneration. Our data reveals that Aubay Société Anonyme allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Aubay Société Anonyme's Growth

Over the past three years, Aubay Société Anonyme has seen its earnings per share (EPS) grow by 4.2% per year. In the last year, its revenue is up 1.1%.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. 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 Aubay Société Anonyme Been A Good Investment?

Since shareholders would have lost about 11% over three years, some Aubay Société Anonyme investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Aubay Société Anonyme that investors should look into moving forward.

Important note: Aubay Société Anonyme 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.