In 2015 Stéphane Boujnah was appointed CEO of Euronext N.V. (EPA:ENX). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Euronext

How Does Stéphane Boujnah's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Euronext N.V. has a market cap of €5.0b, and reported total annual CEO compensation of €2.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €776k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from €3.7b to €11b, we found the median CEO total compensation was €2.4m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Euronext stands. Talking in terms of the sector, salary represented approximately 51% of total compensation out of all the companies we analysed, while other remuneration made up 49% of the pie. Euronext sets aside a smaller share of compensation for salary, in comparison to the overall industry.

So Stéphane Boujnah receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at Euronext, below.

Is Euronext N.V. Growing?

Over the last three years Euronext N.V. has seen earnings per share (EPS) move in a positive direction by an average of 3.5% per year (using a line of best fit). Its revenue is up 10% over last year.

I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has Euronext N.V. Been A Good Investment?

Boasting a total shareholder return of 84% over three years, Euronext N.V. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Stéphane Boujnah is paid around what is normal for the leaders of comparable size companies.

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Looking into other areas, we've picked out 2 warning signs for Euronext that investors should think about before committing capital to this stock.

Important note: Euronext 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.

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