This article will reflect on the compensation paid to Michel Artieres who has served as CEO of ATEME SA (EPA:ATEME) since 2002. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ATEME.
Check out our latest analysis for ATEME
How Does Total Compensation For Michel Artieres Compare With Other Companies In The Industry?
At the time of writing, our data shows that ATEME SA has a market capitalization of €173m, and reported total annual CEO compensation of €322k for the year to December 2019. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth €322k.
In comparison with other companies in the industry with market capitalizations ranging from €84m to €335m, the reported median CEO total compensation was €555k. That is to say, Michel Artieres is paid under the industry median.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | €322k | €241k | 100% |
| Other | - | €76k | - |
| Total Compensation | €322k | €317k | 100% |
On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. On a company level, ATEME prefers to reward its CEO through a salary, opting not to pay Michel Artieres through 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.
ATEME SA's Growth
Over the last three years, ATEME SA has shrunk its earnings per share by 7.3% per year. In the last year, its revenue is up 3.1%.
The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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?
With a three year total loss of 6.5% for the shareholders, ATEME SA would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
ATEME rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, ATEME SA is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Michel is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for ATEME that investors should think about before committing capital to this stock.
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. 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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About ENXTPA:ATEME
ATEME
Produces and sells electronic and computer devices and instruments worldwide.
Good value with reasonable growth potential.
