In 1996 Nicolas Eichenberger was appointed CEO of Perrot Duval Holding S.A. (VTX:PEDU). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

See our latest analysis for Perrot Duval Holding

How Does Nicolas Eichenberger's Compensation Compare With Similar Sized Companies?

According to our data, Perrot Duval Holding S.A. has a market capitalization of CHF16m, and paid its CEO total annual compensation worth CHF444k over the year to April 2019. We think total compensation is more important but we note that the CEO salary is lower, at CHF316k. We took a group of companies with market capitalizations below CHF196m, and calculated the median CEO total compensation to be CHF687k.

A first glance this seems like a real positive for shareholders, since Nicolas Eichenberger is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Perrot Duval Holding, below.

Is Perrot Duval Holding S.A. Growing?

On average over the last three years, Perrot Duval Holding S.A. has shrunk earnings per share by 25% each year (measured with a line of best fit). Its revenue is down 3.2% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Perrot Duval Holding S.A. Been A Good Investment?

Most shareholders would probably be pleased with Perrot Duval Holding S.A. for providing a total return of 178% 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...

It looks like Perrot Duval Holding S.A. pays its CEO less than similar sized companies.

Nicolas Eichenberger is paid less than CEOs of similar size companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. Whatever your view on compensation, you might want to check if insiders are buying or selling Perrot Duval Holding shares (free trial).

Important note: Perrot Duval Holding may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.