Here's Why We Think Engie SA's (EPA:ENGI) CEO Compensation Looks Fair for the time being

Key Insights

• Engie's Annual General Meeting to take place on 24th of April
• Salary of €1.00m is part of CEO Catherine MacGregor's total remuneration
• Total compensation is similar to the industry average
• Engie's total shareholder return over the past three years was 102% while its EPS grew by 5.1% over the past three years

We've discovered 2 warning signs about Engie. View them for free.

Performance at Engie SA (EPA:ENGI) has been reasonably good and CEO Catherine MacGregor has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 24th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Engie

Comparing Engie SA's CEO Compensation With The Industry

Our data indicates that Engie SA has a market capitalization of €45b, and total annual CEO compensation was reported as €4.3m for the year to December 2024. That's a modest increase of 4.5% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €1.0m.

On comparing similar companies in the France Integrated Utilities industry with market capitalizations above €7.0b, we found that the median total CEO compensation was €5.0m. From this we gather that Catherine MacGregor is paid around the median for CEOs in the industry. Moreover, Catherine MacGregor also holds €2.0m worth of Engie stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	€1.0m	€1.0m	23%
Other	€3.3m	€3.1m	77%
Total Compensation	€4.3m	€4.1m	100%

Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. It's interesting to note that Engie 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.

A Look at Engie SA's Growth Numbers

Over the past three years, Engie SA has seen its earnings per share (EPS) grow by 5.1% per year. Its revenue is down 11% over the previous year.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Engie SA Been A Good Investment?

Boasting a total shareholder return of 102% over three years, Engie SA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Engie that you should be aware of before investing.

Important note: Engie 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. 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.