Should You Worry About Christian Dior SE's (EPA:CDI) CEO Pay?

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In 2016 Sidney Toledano was appointed CEO of Christian Dior SE (EPA:CDI). This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. 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.

View our latest analysis for Christian Dior

How Does Sidney Toledano's Compensation Compare With Similar Sized Companies?

Our data indicates that Christian Dior SE is worth €86b, and total annual CEO compensation was reported as €12m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €1.4m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations over €7.2b, and calculated the median CEO total compensation to be €3.2m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

As you can see, Sidney Toledano is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Christian Dior SE is paying too much. 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 Christian Dior, below.

ENXTPA:CDI CEO Compensation, January 20th 2020
ENXTPA:CDI CEO Compensation, January 20th 2020

Is Christian Dior SE Growing?

On average over the last three years, Christian Dior SE has grown earnings per share (EPS) by 13% each year (using a line of best fit). It achieved revenue growth of 12% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Christian Dior SE Been A Good Investment?

I think that the total shareholder return of 160%, over three years, would leave most Christian Dior SE 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...

We compared total CEO remuneration at Christian Dior SE with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.