Yahoo Finance Should You Worry About Safran SA's (EPA:SAF) CEO Pay?
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Philippe Petitcolin has been the CEO of Safran SA (EPA:SAF) since 2015. First, this article will compare CEO compensation with compensation at other large companies. 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.
View our latest analysis for Safran
How Does Philippe Petitcolin's Compensation Compare With Similar Sized Companies?
According to our data, Safran SA has a market capitalization of €56b, and pays its CEO total annual compensation worth €2.9m. (This figure is for the year to December 2018). We note that's an increase of 20% above last year. While we always look at total compensation first, we note that the salary component is less, at €800k. We took a group of companies with market capitalizations over €7.0b, and calculated the median CEO total compensation to be €3.4m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Philippe Petitcolin is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Safran, below.
Is Safran SA Growing?
Safran SA has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 28%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Safran SA Been A Good Investment?
Most shareholders would probably be pleased with Safran SA for providing a total return of 122% over three years. 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...
Philippe Petitcolin is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Safran (free visualization of insider trades).
If you want to buy a stock that is better than Safran, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.