Does Laurent-Perrier S.A.'s (EPA:LPE) CEO Pay Reflect Performance?

Simply Wall St

The CEO of Laurent-Perrier S.A. (EPA:LPE) is Alexandra Pereyre de Nonancourt. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Laurent-Perrier

How Does Alexandra Pereyre de Nonancourt's Compensation Compare With Similar Sized Companies?

According to our data, Laurent-Perrier S.A. has a market capitalization of €533m, and paid its CEO total annual compensation worth €157k over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at €117k. We looked at a group of companies with market capitalizations from €182m to €729m, and the median CEO total compensation was €420k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Laurent-Perrier has changed from year to year.

ENXTPA:LPE CEO Compensation, October 10th 2019

Is Laurent-Perrier S.A. Growing?

On average over the last three years, Laurent-Perrier S.A. has shrunk earnings per share by 3.8% each year (measured with a line of best fit). Its revenue is up 3.2% over last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Laurent-Perrier S.A. Been A Good Investment?

Laurent-Perrier S.A. has served shareholders reasonably well, with a total return of 29% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It appears that Laurent-Perrier S.A. remunerates its CEO below most similar sized companies.

The compensation paid to Alexandra Pereyre de Nonancourt is lower than is usual at similar sized companies. However, the earnings per share are not moving in the right direction, and the returns to shareholders could have been better. We would like to see EPS growth from the business, although we wouldn't say the CEO pay is high. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Laurent-Perrier (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.