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Simon Azoulay became the CEO of Alten SA (EPA:ATE) in 1998. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Alten
How Does Simon Azoulay's Compensation Compare With Similar Sized Companies?
According to our data, Alten SA has a market capitalization of €3.1b, and pays its CEO total annual compensation worth €576k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at €120k. When we examined a selection of companies with market caps ranging from €1.8b to €5.7b, we found the median CEO total compensation was €1.5m.
A first glance this seems like a real positive for shareholders, since Simon Azoulay is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Alten has changed over time.
Is Alten SA Growing?
Over the last three years Alten SA has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 15%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Alten SA Been A Good Investment?
I think that the total shareholder return of 65%, over three years, would leave most Alten SA 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 appears that Alten SA remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Simon Azoulay 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Alten.