How Should Investors Feel About Visiodent S.A.'s (EPA:SDT) CEO Pay?

Morgan Ohnona has been the CEO of Visiodent S.A. (EPA:SDT) since 2014. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Visiodent

How Does Morgan Ohnona's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Visiodent S.A. has a market cap of €11m, and reported total annual CEO compensation of €319k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth €319k. We took a group of companies with market capitalizations below €180m, and calculated the median CEO total compensation to be €281k.

So Morgan Ohnona receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

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

ENXTPA:SDT CEO Compensation, January 23rd 2020
ENXTPA:SDT CEO Compensation, January 23rd 2020

Is Visiodent S.A. Growing?

On average over the last three years, Visiodent S.A. has grown earnings per share (EPS) by 13% each year (using a line of best fit). It achieved revenue growth of 4.0% over the last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Visiodent S.A. Been A Good Investment?

Visiodent S.A. has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. 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...

Morgan Ohnona is paid around the same as most CEOs of similar size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Visiodent (free visualization of insider trades).

Important note: Visiodent 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.

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