Shareholders May Be Wary Of Increasing LACROIX Group SA's (EPA:LACR) CEO Compensation Package

Key Insights

• LACROIX Group's Annual General Meeting to take place on 17th of May
• Salary of €252.1k is part of CEO Vincent Bedouin's total remuneration
• The overall pay is comparable to the industry average
• LACROIX Group's EPS declined by 28% over the past three years while total shareholder loss over the past three years was 41%

LACROIX Group SA (EPA:LACR) has not performed well recently and CEO Vincent Bedouin will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 17th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for LACROIX Group

How Does Total Compensation For Vincent Bedouin Compare With Other Companies In The Industry?

Our data indicates that LACROIX Group SA has a market capitalization of €118m, and total annual CEO compensation was reported as €356k for the year to December 2023. That's slightly lower by 6.9% over the previous year. In particular, the salary of €252.1k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the French Electronic industry with market capitalizations below €185m, we found that the median total CEO compensation was €331k. This suggests that LACROIX Group remunerates its CEO largely in line with the industry average. What's more, Vincent Bedouin holds €2.5m 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	€252k	€242k	71%
Other	€104k	€140k	29%
Total Compensation	€356k	€382k	100%

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. There isn't a significant difference between LACROIX Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at LACROIX Group SA's Growth Numbers

Over the last three years, LACROIX Group SA has shrunk its earnings per share by 28% per year. In the last year, its revenue is up 7.5%.

Few shareholders would be pleased to read that EPS have declined. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has LACROIX Group SA Been A Good Investment?

Few LACROIX Group SA shareholders would feel satisfied with the return of -41% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which is concerning) in LACROIX Group we think you should know about.

Important note: LACROIX Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.