Shareholders May Be More Conservative With Quadient S.A.'s (EPA:QDT) CEO Compensation For Now

Key Insights

• Quadient will host its Annual General Meeting on 14th of June
• CEO Geoffrey Godet's total compensation includes salary of €650.0k
• Total compensation is 1,233% above industry average
• Quadient's three-year loss to shareholders was 4.9% while its EPS grew by 37% over the past three years

As many shareholders of Quadient S.A. (EPA:QDT) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 14th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Quadient

Comparing Quadient S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Quadient S.A. has a market capitalization of €782m, and reported total annual CEO compensation of €2.1m for the year to January 2024. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €650k.

For comparison, other companies in the French Tech industry with market capitalizations ranging between €370m and €1.5b had a median total CEO compensation of €155k. Accordingly, our analysis reveals that Quadient S.A. pays Geoffrey Godet north of the industry median. Furthermore, Geoffrey Godet directly owns €1.3m worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	€650k	€650k	31%
Other	€1.4m	€1.4m	69%
Total Compensation	€2.1m	€2.1m	100%

Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. Quadient pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

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

Over the past three years, Quadient S.A. has seen its earnings per share (EPS) grow by 37% per year. In the last year, its revenue changed by just 0.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Quadient S.A. Been A Good Investment?

With a three year total loss of 4.9% for the shareholders, Quadient S.A. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Quadient that investors should think about before committing capital to this stock.

Switching gears from Quadient, 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.