Is AdUX SA (EPA:ADUX) Overpaying Its CEO?

In this article:

The CEO of AdUX SA (EPA:ADUX) is Cyril Zimmermann. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for AdUX

How Does Cyril Zimmermann's Compensation Compare With Similar Sized Companies?

Our data indicates that AdUX SA is worth €3.9m, and total annual CEO compensation was reported as €232k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €200k. We took a group of companies with market capitalizations below €181m, and calculated the median CEO total compensation to be €150k.

Thus we can conclude that Cyril Zimmermann receives more in total compensation than the median of a group of companies in the same market, and of similar size to AdUX SA. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at AdUX has changed over time.

ENXTPA:ADUX CEO Compensation, November 12th 2019
ENXTPA:ADUX CEO Compensation, November 12th 2019

Is AdUX SA Growing?

Over the last three years AdUX SA has shrunk its earnings per share by an average of 27% per year (measured with a line of best fit). In the last year, its revenue is down 6.3%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AdUX SA Been A Good Investment?

With a three year total loss of 83%, AdUX SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount AdUX SA pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

We think many shareholders would be underwhelmed with the business growth over the last three years. Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! So you may want to check if insiders are buying AdUX shares with their own money (free access).

If you want to buy a stock that is better than AdUX, this free list of high return, low debt companies is a great place to look.

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.

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