This article will reflect on the compensation paid to François Feuillet who has served as CEO of Trigano S.A. (EPA:TRI) since 1981. This analysis will also assess whether Trigano pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Trigano S.A.’s CEO Compensation With the industry
Our data indicates that Trigano S.A. has a market capitalization of €2.1b, and total annual CEO compensation was reported as €603k for the year to August 2019. We note that’s a decrease of 22% compared to last year. Notably, the salary which is €544.0k, represents most of the total compensation being paid.
On examining similar-sized companies in the industry with market capitalizations between €1.7b and €5.4b, we discovered that the median CEO total compensation of that group was €606k. This suggests that Trigano remunerates its CEO largely in line with the industry average. Moreover, François Feuillet also holds €906m worth of Trigano stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 32% of total compensation represents salary and 68% is other remuneration. Trigano is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion – which is generally tied to performance, is lower.
Trigano S.A.’s Growth
Trigano S.A.’s earnings per share (EPS) grew 12% per year over the last three years. In the last year, its revenue changed by just 0.01%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Trigano S.A. Been A Good Investment?
Trigano S.A. has not done too badly by shareholders, with a total return of 5.1%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
As we noted earlier, Trigano pays its CEO in line with similar-sized companies belonging to the same industry. But EPS growth over the last three years has been impressive, although the same cannot be said for shareholder returns. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.
CEO compensation can have a massive impact on performance, but it’s just one element. That’s why we did some digging and identified 2 warning signs for Trigano that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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