There Could Be A Chance Sopra Steria Group SA's (EPA:SOP) CEO Will Have Their Compensation Increased

Key Insights

• Sopra Steria Group will host its Annual General Meeting on 21st of May
• Total pay for CEO Cyril Malarge includes €500.0k salary
• The overall pay is 34% below the industry average
• Over the past three years, Sopra Steria Group's EPS grew by 19% and over the past three years, the total shareholder return was 28%

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Shareholders will be pleased by the robust performance of Sopra Steria Group SA (EPA:SOP) recently and this will be kept in mind in the upcoming AGM on 21st of May. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for Sopra Steria Group

How Does Total Compensation For Cyril Malarge Compare With Other Companies In The Industry?

According to our data, Sopra Steria Group SA has a market capitalization of €3.8b, and paid its CEO total annual compensation worth €753k over the year to December 2024. We note that's a decrease of 41% compared to last year. We note that the salary portion, which stands at €500.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the French IT industry with market capitalizations between €1.8b and €5.7b, we discovered that the median CEO total compensation of that group was €1.1m. In other words, Sopra Steria Group pays its CEO lower than the industry median.

Speaking on an industry level, nearly 65% of total compensation represents salary, while the remainder of 35% is other remuneration. Sopra Steria Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Sopra Steria Group SA's Growth Numbers

Sopra Steria Group SA has seen its earnings per share (EPS) increase by 19% a year over the past three years. In the last year, its revenue is up 5.6%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Sopra Steria Group SA Been A Good Investment?

With a total shareholder return of 28% over three years, Sopra Steria Group SA shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 did our research and spotted 1 warning sign for Sopra Steria Group that investors should look into moving forward.

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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.