Stock Analysis

How Does SII (Société pour l'Informatique Industrielle) Société Anonyme's (EPA:SII) CEO Salary Compare to Peers?

ENXTPA:SII
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Eric Matteucci is the CEO of SII (Société pour l'Informatique Industrielle) Société Anonyme (EPA:SII), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for SII (Société pour l'Informatique Industrielle) Société Anonyme

How Does Total Compensation For Eric Matteucci Compare With Other Companies In The Industry?

Our data indicates that SII (Société pour l'Informatique Industrielle) Société Anonyme has a market capitalization of €484m, and total annual CEO compensation was reported as €628k for the year to March 2020. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at €224k.

In comparison with other companies in the industry with market capitalizations ranging from €164m to €655m, the reported median CEO total compensation was €218k. This suggests that Eric Matteucci is paid more than the median for the industry.

Component20202019Proportion (2020)
Salary €224k €206k 36%
Other €404k €421k 64%
Total Compensation€628k €627k100%

On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. In SII (Société pour l'Informatique Industrielle) Société Anonyme's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ENXTPA:SII CEO Compensation December 29th 2020

A Look at SII (Société pour l'Informatique Industrielle) Société Anonyme's Growth Numbers

Over the last three years, SII (Société pour l'Informatique Industrielle) Société Anonyme has shrunk its earnings per share by 4.1% per year. It saw its revenue drop 1.5% 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. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has SII (Société pour l'Informatique Industrielle) Société Anonyme Been A Good Investment?

SII (Société pour l'Informatique Industrielle) Société Anonyme has generated a total shareholder return of 8.4% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As we touched on above, SII (Société pour l'Informatique Industrielle) Société Anonyme is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, EPS has not grown in three years, failing to impress us. And while shareholder returns have been respectable, they have hardly been superb. So you may want to delve deeper, because we don't think the amount Eric makes is justifiable.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for SII (Société pour l'Informatique Industrielle) Société Anonyme that investors should be aware of in a dynamic business environment.

Important note: SII (Société pour l'Informatique Industrielle) 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. 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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