We think shareholders might consider being more generous with Laurent-Perrier SA (EPA:LPE) CEO compensation

Key ideas

• Laurent-Perrier to hold its Annual General Meeting on July 11
• The total compensation of CEO Alexandra Pereyre de Nonancourt includes a salary of €116.6k
• Total compensation is 77% lower than the industry average
• Laurent-Perrier’s EPS has grown by 36% over the past three years, while total shareholder return over the past three years has been 18%.

The decent performance of Laurent-Perrier SA (EPA:LPE) is likely to delight most shareholders at its annual general meeting on July 11. It will also be an opportunity for them to hear the board review financial results, discuss the company’s future strategy to further improve the business, and vote on resolutions such as executive pay. We’ve prepared an analysis below and show you why we think the CEO’s pay looks decent, even with the possibility of an increase.

Discover our latest analysis for Laurent-Perrier

How does Alexandra Pereyre de Nonancourt’s total compensation compare to other companies in the industry?

According to our data, Laurent-Perrier SA has a market capitalization of €684 million and paid its CEO a total annual compensation of €163k in the year to March 2024. This amount is virtually stable compared to the previous year’s compensation. We note that the salary portion, which amounts to €116.6k, constitutes the majority of the total compensation received by the CEO.

Compared to other companies in the French beverage sector with market capitalizations between €370 million and €1.5 billion, the median total CEO compensation reported is €699,000. In other words, Laurent-Perrier pays its CEO less than the industry median.

Component	2024	2023	Proportion (2024)
Salary	117,000 €	117,000 €	72%
Other	46,000 €	46,000 €	28%
Full compensation	163,000 €	163,000 €	100%

At the sector level, almost 64% of total compensation is made up of salaries, while the remaining 36% is made up of other compensation. Interestingly, Laurent-Perrier pays a larger share of its compensation in the form of salaries, compared to the rest of the sector. If total compensation is more inclined towards salary, this suggests that the variable portion, which is generally linked to performance, is lower.

An overview of Laurent-Perrier SA’s growth figures

Laurent-Perrier SA’s earnings per share (EPS) have grown by 36% per year over the past three years. Last year, its revenue increased by 1.5%.

Shareholders will be pleased to know that the company has improved over the last few years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you may want to check out this free visual report on analysts’ forecasts for the future profits of the company.

Is Laurent-Perrier SA a good investment?

With a total shareholder return of 18% over three years, Laurent-Perrier SA shareholders should generally be reasonably satisfied. But they probably don’t want to see the CEO paid more than is normal for companies of the same size.

In summary…

Overall, the company hasn’t performed too badly, but we’d like to see improvement. Assuming the company continues to grow at a healthy pace, few shareholders would object to the CEO’s compensation. Instead, investors may be more interested in discussions that would help them manage their long-term growth expectations, such as the company’s business strategies and future growth potential.

CEO compensation is one thing, but it’s also interesting to check whether the CEO is buying or selling Laurent-Perrier (free insider trading view).

Now let’s move on to Laurent-Perrier. If you’re looking for a spotless track record and top-notch returns, this free The list of high-yield, low-debt companies is a great place to look.

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

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