How Is Albioma's (EPA:ABIO) CEO Paid Relative To Peers?

This article will reflect on the compensation paid to Frédéric Moyne who has served as CEO of Albioma (EPA:ABIO) since 2016. This analysis will also assess whether Albioma pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Albioma

Comparing Albioma's CEO Compensation With the industry

According to our data, Albioma has a market capitalization of €1.3b, and paid its CEO total annual compensation worth €986k over the year to December 2019. We note that's an increase of 28% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €324k.

For comparison, other companies in the same industry with market capitalizations ranging between €843m and €2.7b had a median total CEO compensation of €1.4m. So it looks like Albioma compensates Frédéric Moyne in line with the median for the industry.

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. It's interesting to note that Albioma allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Albioma's Growth

Over the past three years, Albioma has seen its earnings per share (EPS) grow by 12% per year. Its revenue is up 10% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Albioma Been A Good Investment?

Most shareholders would probably be pleased with Albioma for providing a total return of 120% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As previously discussed, Frédéric is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Albioma that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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