Alain Dehaze became the CEO of Adecco Group AG (VTX:ADEN) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for Adecco Group
How Does Alain Dehaze's Compensation Compare With Similar Sized Companies?
According to our data, Adecco Group AG has a market capitalization of CHF9.2b, and pays its CEO total annual compensation worth €4.2m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at €1.5m. We examined companies with market caps from CHF4.0b to CHF12b, and discovered that the median CEO total compensation of that group was CHF2.0m.
As you can see, Alain Dehaze is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Adecco Group AG is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Adecco Group, below.
Is Adecco Group AG Growing?
Over the last three years Adecco Group AG has grown its earnings per share (EPS) by an average of 3.9% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
I would argue that the lack of revenue growth in the last year is less than ideal, but I'm happy with the EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Adecco Group AG Been A Good Investment?
With a total shareholder return of 17% over three years, Adecco Group AG shareholders would, in general, 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...
We examined the amount Adecco Group AG pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Adecco Group.