Neurones S.A.'s (EPA:NRO) CEO Looks Due For A Compensation Raise

Key Insights

• Neurones will host its Annual General Meeting on 5th of June
• Total pay for CEO Luc de Chammard includes €260.0k salary
• The overall pay is 45% below the industry average
• Over the past three years, Neurones' EPS grew by 12% and over the past three years, the total shareholder return was 42%

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Shareholders will be pleased by the impressive results for Neurones S.A. (EPA:NRO) recently and CEO Luc de Chammard has played a key role. At the upcoming AGM on 5th of June, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Neurones

How Does Total Compensation For Luc de Chammard Compare With Other Companies In The Industry?

According to our data, Neurones S.A. has a market capitalization of €1.1b, and paid its CEO total annual compensation worth €264k over the year to December 2024. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at €260.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the French IT industry with market capitalizations between €880m and €2.8b, we discovered that the median CEO total compensation of that group was €482k. That is to say, Luc de Chammard is paid under the industry median. Furthermore, Luc de Chammard directly owns €684m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Neurones has gone down a largely traditional route, paying Luc de Chammard a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Neurones S.A.'s Growth

Neurones S.A. has seen its earnings per share (EPS) increase by 12% a year over the past three years. It achieved revenue growth of 9.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Neurones S.A. Been A Good Investment?

We think that the total shareholder return of 42%, over three years, would leave most Neurones S.A. shareholders smiling. 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...

Neurones pays its CEO a majority of compensation through a salary. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Neurones (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.