Does Société Fermière du Casino Municipal de Cannes's (EPA:FCMC) CEO Salary Reflect Performance?

Tuesday 14th April 2020

In 2008 Alain Fabre was appointed CEO of Société Fermière du Casino Municipal de Cannes (EPA:FCMC). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Société Fermière du Casino Municipal de Cannes

At the time of writing, our data says that Société Fermière du Casino Municipal de Cannes has a market cap of €208m, and reported total annual CEO compensation of €272k for the year to October 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €184k. When we examined a selection of companies with market caps ranging from €92m to €367m, we found the median CEO total compensation was €398k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 68% of total compensation out of all the companies we analysed, while other remuneration made up 32% of the pie. Société Fermière du Casino Municipal de Cannes does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

Most shareholders would consider it a positive that Alain Fabre takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at Société Fermière du Casino Municipal de Cannes has changed from year to year.

Over the last three years Société Fermière du Casino Municipal de Cannes has shrunk its earnings per share by an average of 17% per year (measured with a line of best fit). Its revenue is up 1.1% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Given the total loss of 11% over three years, many shareholders in Société Fermière du Casino Municipal de Cannes are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

Société Fermière du Casino Municipal de Cannes is currently paying its CEO below what is normal for companies of its size.

The compensation paid to Alain Fabre is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Moving away from CEO compensation for the moment, we've identified 3 warning signs for Société Fermière du Casino Municipal de Cannes that you should be aware of before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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