Here's Why Shareholders Should Examine ATEME SA's (EPA:ATEME) CEO Compensation Package More Closely

Key Insights

• ATEME to hold its Annual General Meeting on 12th of June
• Total pay for CEO Michel Artieres includes €175.0k salary
• The overall pay is comparable to the industry average
• ATEME's EPS declined by 42% over the past three years while total shareholder loss over the past three years was 63%

The results at ATEME SA (EPA:ATEME) have been quite disappointing recently and CEO Michel Artieres bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 12th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for ATEME

How Does Total Compensation For Michel Artieres Compare With Other Companies In The Industry?

According to our data, ATEME SA has a market capitalization of €64m, and paid its CEO total annual compensation worth €268k over the year to December 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is €175.0k, represents most of the total compensation being paid.

In comparison with other companies in the French Communications industry with market capitalizations under €184m, the reported median total CEO compensation was €268k. So it looks like ATEME compensates Michel Artieres in line with the median for the industry. What's more, Michel Artieres holds €6.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	€175k	€175k	65%
Other	€93k	€93k	35%
Total Compensation	€268k	€268k	100%

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. There isn't a significant difference between ATEME and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ATEME SA's Growth

ATEME SA has reduced its earnings per share by 42% a year over the last three years. It achieved revenue growth of 10% over the last year.

Overall this is not a very positive result for shareholders. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 ATEME SA Been A Good Investment?

Few ATEME SA shareholders would feel satisfied with the return of -63% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for ATEME (1 is significant!) that you should be aware of before investing here.

Switching gears from ATEME, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.