In 2017 Christel Bories was appointed CEO of ERAMET S.A. (EPA:ERA). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for ERAMET

How Does Christel Bories's Compensation Compare With Similar Sized Companies?

According to our data, ERAMET S.A. has a market capitalization of €1.3b, and paid its CEO total annual compensation worth €3.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €800k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from €908m to €2.9b, and discovered that the median CEO total compensation of that group was €990k.

Thus we can conclude that Christel Bories receives more in total compensation than the median of a group of companies in the same market, and of similar size to ERAMET S.A.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at ERAMET has changed from year to year.

Is ERAMET S.A. Growing?

ERAMET S.A. has increased its earnings per share (EPS) by an average of 94% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 7.3%.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has ERAMET S.A. Been A Good Investment?

ERAMET S.A. has generated a total shareholder return of 4.0% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared the total CEO remuneration paid by ERAMET S.A., 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, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying ERAMET shares with their own money (free access).

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.