Shareholders Will Most Likely Find VusionGroup S.A.'s (EPA:VU) CEO Compensation Acceptable

Key Insights

• VusionGroup to hold its Annual General Meeting on 17th of June
• CEO Thierry Gadou's total compensation includes salary of €400.0k
• Total compensation is similar to the industry average
• Over the past three years, VusionGroup's EPS fell by 20% and over the past three years, the total shareholder return was 233%

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Performance at VusionGroup S.A. (EPA:VU) has been reasonably good and CEO Thierry Gadou has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of June. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for VusionGroup

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

At the time of writing, our data shows that VusionGroup S.A. has a market capitalization of €4.0b, and reported total annual CEO compensation of €1.5m for the year to December 2024. We note that's an increase of 23% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €400k.

On examining similar-sized companies in the French Electronic industry with market capitalizations between €1.8b and €5.6b, we discovered that the median CEO total compensation of that group was €1.5m. This suggests that VusionGroup remunerates its CEO largely in line with the industry average. Moreover, Thierry Gadou also holds €56m worth of VusionGroup stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€400k	€360k	26%
Other	€1.1m	€876k	74%
Total Compensation	€1.5m	€1.2m	100%

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. VusionGroup sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

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

VusionGroup S.A. has reduced its earnings per share by 20% a year over the last three years. It achieved revenue growth of 19% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has VusionGroup S.A. Been A Good Investment?

We think that the total shareholder return of 233%, over three years, would leave most VusionGroup S.A. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling VusionGroup (free visualization of insider trades).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.