Is Augros Cosmetic Packaging SA's (EPA:AUGR) CEO Paid Enough Relative To Peers?

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Didier Bourgine has been the CEO of Augros Cosmetic Packaging SA (EPA:AUGR) since 2002. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Augros Cosmetic Packaging

How Does Didier Bourgine's Compensation Compare With Similar Sized Companies?

Our data indicates that Augros Cosmetic Packaging SA is worth €7.3m, and total annual CEO compensation was reported as €169k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €133k. We took a group of companies with market capitalizations below €181m, and calculated the median CEO total compensation to be €289k.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Augros Cosmetic Packaging stands. On a sector level, around 79% of total compensation represents salary and 21% is other remuneration. Augros Cosmetic Packaging does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

Most shareholders would consider it a positive that Didier Bourgine takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see, below, how CEO compensation at Augros Cosmetic Packaging has changed over time.

ENXTPA:AUGR CEO Compensation March 27th 2020
ENXTPA:AUGR CEO Compensation March 27th 2020

Is Augros Cosmetic Packaging SA Growing?

Augros Cosmetic Packaging SA has seen earnings per share (EPS) move positively by an average of 74% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Augros Cosmetic Packaging SA Been A Good Investment?

Most shareholders would probably be pleased with Augros Cosmetic Packaging SA for providing a total return of 67% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Augros Cosmetic Packaging SA is currently paying its CEO below what is normal for companies of its size.

Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Didier Bourgine deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Shifting gears from CEO pay for a second, we've spotted 4 warning signs for Augros Cosmetic Packaging you should be aware of, and 3 of them are a bit concerning.

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

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.

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. Thank you for reading.

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