The CEO of PSB Industries (EPA:PSB) is François-Xavier Entremont. 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.
Check out our latest analysis for PSB Industries
How Does François-Xavier Entremont’s Compensation Compare With Similar Sized Companies?
According to our data, PSB Industries has a market capitalization of €110m, and pays its CEO total annual compensation worth €250k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €96k. We took a group of companies with market capitalizations below €178m, and calculated the median CEO compensation to be €146k.
Thus we can conclude that François-Xavier Entremont receives more in total compensation than the median of a group of companies in the same market, and of similar size to PSB Industries. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at PSB Industries has changed over time.
Is PSB Industries Growing?
Over the last three years PSB Industries has shrunk its earnings per share by an average of 27% per year (measured with a line of best fit). Its revenue is up 5.9% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has PSB Industries Been A Good Investment?
With a total shareholder return of 5.1% over three years, PSB Industries has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We examined the amount PSB Industries pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.