What Did Archos' (EPA:JXR) CEO Take Home Last Year?

Loic Poirier became the CEO of Archos S.A. (EPA:JXR) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Archos pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Archos

How Does Total Compensation For Loic Poirier Compare With Other Companies In The Industry?

Our data indicates that Archos S.A. has a market capitalization of €5.9m, and total annual CEO compensation was reported as €459k for the year to December 2019. That's a notable decrease of 8.7% on last year. In particular, the salary of €452.9k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under €165m, the reported median total CEO compensation was €317k. Accordingly, our analysis reveals that Archos S.A. pays Loic Poirier north of the industry median. Moreover, Loic Poirier also holds €50k worth of Archos stock directly under their own name.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Investors will find it interesting that Archos pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Archos S.A.'s Growth Numbers

Over the last three years, Archos S.A. has shrunk its earnings per share by 28% per year. It saw its revenue drop 39% over the last year.

The decline in EPS is a bit concerning. 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Archos S.A. Been A Good Investment?

With a three year total loss of 94% for the shareholders, Archos S.A. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Loic receives almost all of their compensation through a salary. As previously discussed, Loic is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. To make matters worse, EPS growth has also been negative during this period. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO 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 3 warning signs for Archos 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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