Key Insights

• Inter Parfums to hold its Annual General Meeting on 17th of September
• CEO Jean Madar's total compensation includes salary of US$2.00m
• The total compensation is 103% higher than the average for the industry
• Inter Parfums' total shareholder return over the past three years was 79% while its EPS grew by 20% over the past three years

CEO Jean Madar has done a decent job of delivering relatively good performance at Inter Parfums, Inc. (NASDAQ:IPAR) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of September. However, some shareholders may still want to keep CEO compensation within reason.

How Does Total Compensation For Jean Madar Compare With Other Companies In The Industry?

At the time of writing, our data shows that Inter Parfums, Inc. has a market capitalization of US$3.8b, and reported total annual CEO compensation of US$2.0m for the year to December 2023. Notably, that's an increase of 63% over the year before. Notably, the salary of US$2.0m is the entirety of the CEO compensation.

On examining similar-sized companies in the American Personal Products industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$986k. This suggests that Jean Madar is paid more than the median for the industry. What's more, Jean Madar holds US$829m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. On a company level, Inter Parfums prefers to reward its CEO through a salary, opting not to pay Jean Madar through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Inter Parfums, Inc.'s Growth

Inter Parfums, Inc. has seen its earnings per share (EPS) increase by 20% a year over the past three years. It achieved revenue growth of 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Inter Parfums, Inc. Been A Good Investment?

We think that the total shareholder return of 79%, over three years, would leave most Inter Parfums, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Inter Parfums rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Inter Parfums that you should be aware of before investing.

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

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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.