Is Devoteam SA's (EPA:DVT) CEO Paid Enough Relative To Peers?

Godefroy de Bentzmann became the CEO of Devoteam SA (EPA:DVT) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Devoteam

How Does Godefroy de Bentzmann's Compensation Compare With Similar Sized Companies?

Our data indicates that Devoteam SA is worth €802m, and total annual CEO compensation is €2.1m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at €215k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €357m to €1.4b. The median total CEO compensation was €607k.

Thus we can conclude that Godefroy de Bentzmann receives more in total compensation than the median of a group of companies in the same market, and of similar size to Devoteam SA. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

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

ENXTPA:DVT CEO Compensation, August 14th 2019
ENXTPA:DVT CEO Compensation, August 14th 2019

Is Devoteam SA Growing?

On average over the last three years, Devoteam SA has grown earnings per share (EPS) by 27% each year (using a line of best fit). In the last year, its revenue is up 27%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Devoteam SA Been A Good Investment?

Boasting a total shareholder return of 148% over three years, Devoteam SA has done well by shareholders. 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...

We compared the total CEO remuneration paid by Devoteam SA, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Devoteam (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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