Is Société Marseillaise du Tunnel Prado Carénage’s (EPA:SMTPC) CEO Salary Justified?

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Cecile Cambier is the CEO of Société Marseillaise du Tunnel Prado Carénage (EPA:SMTPC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Société Marseillaise du Tunnel Prado Carénage

How Does Cecile Cambier’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Société Marseillaise du Tunnel Prado Carénage has a market cap of €112m, and is paying total annual CEO compensation of €340k. (This is based on the year to December 2018). That’s a notable increase of 55% on last year. Notably, the salary of €340k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below €176m, and calculated the median CEO total compensation to be €145k.

It would therefore appear that Société Marseillaise du Tunnel Prado Carénage pays Cecile Cambier more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Société Marseillaise du Tunnel Prado Carénage, below.

ENXTPA:SMTPC CEO Compensation, June 26th 2019
ENXTPA:SMTPC CEO Compensation, June 26th 2019

Is Société Marseillaise du Tunnel Prado Carénage Growing?

Société Marseillaise du Tunnel Prado Carénage has increased its earnings per share (EPS) by an average of 1.4% a year, over the last three years (using a line of best fit). Its revenue is down -3.6% over last year.

I would prefer it if there was revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Société Marseillaise du Tunnel Prado Carénage Been A Good Investment?

With a three year total loss of 15%, Société Marseillaise du Tunnel Prado Carénage would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We compared total CEO remuneration at Société Marseillaise du Tunnel Prado Carénage with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. So shareholders might not feel great about the fact that CEO pay increased on last year. Although we’d stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. So you may want to check if insiders are buying Société Marseillaise du Tunnel Prado Carénage shares with their own money (free access).

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.