A Look At Innelec Multimédia's (EPA:INN) CEO Remuneration

Denis Thébaud is the CEO of Innelec Multimédia SA (EPA:INN), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Innelec Multimédia pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Innelec Multimédia

How Does Total Compensation For Denis Thébaud Compare With Other Companies In The Industry?

Our data indicates that Innelec Multimédia SA has a market capitalization of €16m, and total annual CEO compensation was reported as €212k for the year to March 2020. We note that's an increase of 35% above last year. We note that the salary portion, which stands at €151.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under €165m, the reported median total CEO compensation was €246k. So it looks like Innelec Multimédia compensates Denis Thébaud in line with the median for the industry.

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. Although there is a difference in how total compensation is set, Innelec Multimédia more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Innelec Multimédia SA's Growth Numbers

Innelec Multimédia SA has seen its earnings per share (EPS) increase by 98% a year over the past three years. In the last year, its revenue is down 5.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Innelec Multimédia SA Been A Good Investment?

With a three year total loss of 13% for the shareholders, Innelec Multimédia SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Innelec Multimédia SA is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Innelec Multimédia that you should be aware of before investing.

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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