In 2016 Jongen Thibauld was appointed CEO of Société Anonyme Belge de Constructions Aéronautiques (EBR:SAB). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Jongen Thibauld’s Compensation Compare With Similar Sized Companies?
Our data indicates that Société Anonyme Belge de Constructions Aéronautiques is worth €54m, and total annual CEO compensation is €242k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at €211k. We looked at a group of companies with market capitalizations under €176m, and the median CEO compensation was €300k.
So Jongen Thibauld receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Société Anonyme Belge de Constructions Aéronautiques has changed from year to year.
Is Société Anonyme Belge de Constructions Aéronautiques Growing?
Over the last three years Société Anonyme Belge de Constructions Aéronautiques has grown its earnings per share (EPS) by an average of 53% per year. In the last year, its revenue is down -3.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Société Anonyme Belge de Constructions Aéronautiques Been A Good Investment?
With a three year total loss of 25%, Société Anonyme Belge de Constructions Aéronautiques would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Jongen Thibauld is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Société Anonyme Belge de Constructions Aéronautiques (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.