Our View On Signaux Girod's (EPA:GIRO) CEO Pay

By
Simply Wall St
Published
February 21, 2021
ENXTPA:ALGIR
Source: Shutterstock

This article will reflect on the compensation paid to Claude Girod who has served as CEO of Signaux Girod S.A. (EPA:GIRO) since 2012. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Signaux Girod.

See our latest analysis for Signaux Girod

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

At the time of writing, our data shows that Signaux Girod S.A. has a market capitalization of €17m, and reported total annual CEO compensation of €207k for the year to September 2020. Notably, that's an increase of 17% over the year before. In particular, the salary of €156.6k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below €165m, reported a median total CEO compensation of €207k. This suggests that Signaux Girod remunerates its CEO largely in line with the industry average.

Component20202019Proportion (2020)
Salary €157k €153k 76%
Other €50k €23k 24%
Total Compensation€207k €176k100%

Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. There isn't a significant difference between Signaux Girod and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ENXTPA:GIRO CEO Compensation February 22nd 2021

A Look at Signaux Girod S.A.'s Growth Numbers

Over the last three years, Signaux Girod S.A. has shrunk its earnings per share by 18% per year. Its revenue is down 13% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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?

Since shareholders would have lost about 1.1% over three years, some Signaux Girod S.A. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Claude is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Signaux Girod (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the 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.

When trading Signaux Girod or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.