In This Article:
In 2009 Jacques Aschenbroich was appointed CEO of Valeo SA (EPA:FR). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Valeo
How Does Jacques Aschenbroich's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Valeo SA has a market cap of €6.9b, and reported total annual CEO compensation of €4.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.6b to €11b. The median total CEO compensation was €2.3m.
It would therefore appear that Valeo SA pays Jacques Aschenbroich more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Valeo, below.
Is Valeo SA Growing?
On average over the last three years, Valeo SA has shrunk earnings per share by 25% each year (measured with a line of best fit). Revenue was pretty flat on last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Valeo SA Been A Good Investment?
Since shareholders would have lost about 35% over three years, some Valeo SA shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Valeo SA with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if Valeo insiders are buying or selling shares.