Most Shareholders Will Probably Find That The CEO Compensation For Assystem S.A. (EPA:ASY) Is Reasonable

Key Insights

• Assystem to hold its Annual General Meeting on 23rd of May
• CEO Dominique Louis' total compensation includes salary of €174.0k
• Total compensation is similar to the industry average
• Over the past three years, Assystem's EPS fell by 34% and over the past three years, the total shareholder return was 36%

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Assystem S.A. (EPA:ASY) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. The upcoming AGM on 23rd of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Assystem

Comparing Assystem S.A.'s CEO Compensation With The Industry

Our data indicates that Assystem S.A. has a market capitalization of €579m, and total annual CEO compensation was reported as €820k for the year to December 2024. That's a notable decrease of 14% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €174k.

For comparison, other companies in the French Professional Services industry with market capitalizations ranging between €359m and €1.4b had a median total CEO compensation of €1.0m. From this we gather that Dominique Louis is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	€174k	€174k	21%
Other	€646k	€778k	79%
Total Compensation	€820k	€952k	100%

On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that Assystem allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Assystem S.A.'s Growth Numbers

Over the last three years, Assystem S.A. has shrunk its earnings per share by 34% per year. Its revenue is up 5.9% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Assystem S.A. Been A Good Investment?

Boasting a total shareholder return of 36% over three years, Assystem S.A. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Assystem that investors should be aware of in a dynamic business environment.

Important note: Assystem is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.