What Can We Learn About Aeroports de Paris' (EPA:ADP) CEO Compensation?

This article will reflect on the compensation paid to Augustin Pascal Pierre Louis de Romanet de Beaune who has served as CEO of Aeroports de Paris SA (EPA:ADP) since 2012. This analysis will also assess whether Aeroports de Paris pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Aeroports de Paris

How Does Total Compensation For Augustin Pascal Pierre Louis de Romanet de Beaune Compare With Other Companies In The Industry?

Our data indicates that Aeroports de Paris SA has a market capitalization of €11b, and total annual CEO compensation was reported as €456k for the year to December 2019. This means that the compensation hasn't changed much from last year. In particular, the salary of €350.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations above €6.8b, reported a median total CEO compensation of €271k. Accordingly, our analysis reveals that Aeroports de Paris SA pays Augustin Pascal Pierre Louis de Romanet de Beaune north of the industry median.

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. There isn't a significant difference between Aeroports de Paris 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.

Aeroports de Paris SA's Growth

Aeroports de Paris SA has reduced its earnings per share by 29% a year over the last three years. Its revenue is down 15% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Aeroports de Paris SA Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in Aeroports de Paris SA are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Augustin Pascal Pierre Louis is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. What's equally worrying is that the company isn't growing by our analysis. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Aeroports de Paris we think you should know about.

Important note: Aeroports de Paris 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. 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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