Why Gérard Perrier Industrie S.A.'s (EPA:PERR) CEO Pay Matters To You

Francois Perrier is the CEO of Gérard Perrier Industrie S.A. (EPA:PERR). 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.

See our latest analysis for Gérard Perrier Industrie

How Does Francois Perrier's Compensation Compare With Similar Sized Companies?

According to our data, Gérard Perrier Industrie S.A. has a market capitalization of €248m, and paid its CEO total annual compensation worth €120k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €50k. We looked at a group of companies with market capitalizations from €92m to €368m, and the median CEO total compensation was €371k.

Most shareholders would consider it a positive that Francois Perrier takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Gérard Perrier Industrie, below.

ENXTPA:PERR CEO Compensation, February 24th 2020
ENXTPA:PERR CEO Compensation, February 24th 2020

Is Gérard Perrier Industrie S.A. Growing?

Gérard Perrier Industrie S.A. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). Its revenue is up 8.3% over last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has Gérard Perrier Industrie S.A. Been A Good Investment?

I think that the total shareholder return of 63%, over three years, would leave most Gérard Perrier Industrie S.A. shareholders smiling. 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 Gérard Perrier Industrie S.A. pays its CEO less than similar sized companies.

Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Francois Perrier deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Gérard Perrier Industrie insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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