Arthur Sadoun has been the CEO of Publicis Groupe S.A. (EPA:PUB) since 2017. This analysis aims first to contrast CEO compensation with other large 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Publicis Groupe

How Does Arthur Sadoun's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Publicis Groupe S.A. has a market cap of €9.5b, and reported total annual CEO compensation of €4.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €1.0m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a group of companies with market caps over €7.2b, we found that their median CEO total compensation was €3.4m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

That means Arthur Sadoun receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

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

Is Publicis Groupe S.A. Growing?

Publicis Groupe S.A. has increased its earnings per share (EPS) by an average of 53% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.0%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.

Has Publicis Groupe S.A. Been A Good Investment?

Given the total loss of 31% over three years, many shareholders in Publicis Groupe S.A. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Arthur Sadoun is paid around the same as most CEOs of large companies.

We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Publicis Groupe shares (free trial).

Important note: Publicis Groupe 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.