What We Learned About Neurones' (EPA:NRO) CEO Pay

The CEO of Neurones S.A. (EPA:NRO) is Luc de Chammard, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Neurones

Comparing Neurones S.A.'s CEO Compensation With the industry

Our data indicates that Neurones S.A. has a market capitalization of €581m, and total annual CEO compensation was reported as €220k for the year to December 2019. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €220k.

On examining similar-sized companies in the industry with market capitalizations between €335m and €1.3b, we discovered that the median CEO total compensation of that group was €531k. That is to say, Luc de Chammard is paid under the industry median. Furthermore, Luc de Chammard directly owns €387m 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 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. Speaking on a company level, Neurones prefers to tread along a traditional path, disbursing all compensation through a salary. 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.'s earnings per share (EPS) grew 1.3% per year over the last three years. Its revenue is up 2.0% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Neurones S.A. Been A Good Investment?

With a three year total loss of 12% for the shareholders, Neurones S.A. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

Neurones rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Neurones S.A. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But then, EPS growth is lacking and so are the returns to shareholders. So while we don't think, Luc is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Neurones.

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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