Dominique Cerutti became the CEO of Altran Technologies SA (EPA:ALT) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Altran Technologies
How Does Dominique Cerutti’s Compensation Compare With Similar Sized Companies?
According to our data, Altran Technologies SA has a market capitalization of €2.0b, and pays its CEO total annual compensation worth €1.9m. We note that’s an increase of 54% above last year. We examined companies with market caps from €878m to €2.8b, and discovered that the median CEO compensation of that group was €1.0m.
It would therefore appear that Altran Technologies SA pays Dominique Cerutti 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 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 Altran Technologies, below.
Is Altran Technologies SA Growing?
Over the last three years Altran Technologies SA has grown its earnings per share (EPS) by an average of 6.4% per year. Its revenue is up 14% over last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Altran Technologies SA Been A Good Investment?
With a three year total loss of 19%, Altran Technologies SA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared total CEO remuneration at Altran Technologies 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.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. This doesn’t look great when you consider CEO remuneration is up on last year. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things.