In This Article:
Jean-Philippe Waterschoot became the CEO of Texaf S.A. (EBR:TEXF) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Texaf
How Does Jean-Philippe Waterschoot's Compensation Compare With Similar Sized Companies?
Our data indicates that Texaf S.A. is worth €124m, and total annual CEO compensation was reported as €461k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €340k. We examined a group of similar sized companies, with market capitalizations of below €182m. The median CEO total compensation in that group is €386k.
So Jean-Philippe Waterschoot receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Texaf has changed over time.
Is Texaf S.A. Growing?
Texaf S.A. has increased its earnings per share (EPS) by an average of 38% a year, over the last three years (using a line of best fit). It achieved revenue growth of 9.0% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Texaf S.A. Been A Good Investment?
Texaf S.A. has not done too badly by shareholders, with a total return of 9.6%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Jean-Philippe Waterschoot 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. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying Texaf shares with their own money (free access).
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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