Christian Poyau is the CEO of Micropole S.A. (EPA:MUN), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Micropole.
See our latest analysis for Micropole
Comparing Micropole S.A.'s CEO Compensation With the industry
Our data indicates that Micropole S.A. has a market capitalization of €31m, and total annual CEO compensation was reported as €396k for the year to December 2019. We note that's an increase of 33% above last year. We note that the salary portion, which stands at €339.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under €169m, the reported median total CEO compensation was €260k. Accordingly, our analysis reveals that Micropole S.A. pays Christian Poyau north of the industry median. Moreover, Christian Poyau also holds €3.7m worth of Micropole stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €339k | €240k | 86% |
| Other | €57k | €57k | 14% |
| Total Compensation | €396k | €297k | 100% |
On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. According to our research, Micropole has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Micropole S.A.'s Growth Numbers
Over the past three years, Micropole S.A. has seen its earnings per share (EPS) grow by 60% per year. Its revenue is up 5.8% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Micropole S.A. Been A Good Investment?
Given the total shareholder loss of 16% over three years, many shareholders in Micropole S.A. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As previously discussed, Christian is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Christian is earning a very handsome sum.
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've identified 3 warning signs for Micropole that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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. 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.
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About ENXTPA:ALMIC
Micropole
Operates as a consulting, engineering, and IT services company in France and internationally.
Flawless balance sheet moderate.
