We Think Some Shareholders May Hesitate To Increase Signaux Girod S.A.'s (EPA:ALGIR) CEO Compensation

Key Insights

• Signaux Girod to hold its Annual General Meeting on 27th of March
• Salary of €166.9k is part of CEO Claude Girod's total remuneration
• The total compensation is 142% higher than the average for the industry
• Signaux Girod's total shareholder return over the past three years was 21% while its EPS grew by 90% over the past three years

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Performance at Signaux Girod S.A. (EPA:ALGIR) has been reasonably good and CEO Claude Girod 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 27th of March. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Signaux Girod

How Does Total Compensation For Claude Girod Compare With Other Companies In The Industry?

According to our data, Signaux Girod S.A. has a market capitalization of €19m, and paid its CEO total annual compensation worth €220k over the year to September 2024. We note that's a decrease of 20% compared to last year. We note that the salary portion, which stands at €166.9k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the France Infrastructure industry with market capitalizations below €184m, reported a median total CEO compensation of €91k. This suggests that Claude Girod is paid more than the median for the industry.

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. It's interesting to note that Signaux Girod pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Signaux Girod S.A.'s Growth

Signaux Girod S.A. has seen its earnings per share (EPS) increase by 90% a year over the past three years. Its revenue is down 3.2% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Signaux Girod S.A. Been A Good Investment?

With a total shareholder return of 21% over three years, Signaux Girod S.A. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 4 warning signs for Signaux Girod that investors should think about before committing capital to this stock.

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.