We Discuss Why Criteo S.A.'s (NASDAQ:CRTO) CEO Compensation May Be Closely Reviewed

Key Insights

• Criteo's Annual General Meeting to take place on 25th of June
• Total pay for CEO Megan Clarken includes US$665.0k salary
• The total compensation is similar to the average for the industry
• Criteo's three-year loss to shareholders was 9.4% while its EPS was down 0.5% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Criteo S.A. (NASDAQ:CRTO) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Criteo

Comparing Criteo S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Criteo S.A. has a market capitalization of US$2.0b, and reported total annual CEO compensation of US$9.2m for the year to December 2023. We note that's an increase of 30% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$665k.

For comparison, other companies in the American Media industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$8.4m. So it looks like Criteo compensates Megan Clarken in line with the median for the industry. What's more, Megan Clarken holds US$19m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$665k	US$650k	7%
Other	US$8.5m	US$6.4m	93%
Total Compensation	US$9.2m	US$7.1m	100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that Criteo 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.

Criteo S.A.'s Growth

Criteo S.A. saw earnings per share stay pretty flat over the last three years. In the last year, its revenue changed by just 0.2%.

A lack of EPS improvement is not good to see. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Criteo S.A. Been A Good Investment?

With a three year total loss of 9.4% for the shareholders, Criteo S.A. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Criteo that investors should be aware of in a dynamic business environment.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com