Richard Blickman has been the CEO of BE Semiconductor Industries N.V. (AMS:BESI) since 1995, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also assess whether BE Semiconductor Industries pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing BE Semiconductor Industries N.V.’s CEO Compensation With the industry
According to our data, BE Semiconductor Industries N.V. has a market capitalization of €2.8b, and paid its CEO total annual compensation worth €4.5m over the year to December 2019. Notably, that’s a decrease of 33% over the year before. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at €600k.
On comparing similar companies from the same industry with market caps ranging from €1.7b to €5.4b, we found that the median CEO total compensation was €1.6m. Accordingly, our analysis reveals that BE Semiconductor Industries N.V. pays Richard Blickman north of the industry median. What’s more, Richard Blickman holds €69m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. It’s interesting to note that BE Semiconductor Industries allocates a smaller portion of compensation to salary in comparison to the broader industry. It’s important to note that a slant towards non-salary compensation suggests that total pay is tied to the company’s performance.
BE Semiconductor Industries N.V.’s Growth
Earnings per share at BE Semiconductor Industries N.V. are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is up 3.8%.
We’d prefer higher revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has BE Semiconductor Industries N.V. Been A Good Investment?
Boasting a total shareholder return of 70% over three years, BE Semiconductor Industries N.V. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
As previously discussed, Richard is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Still, shareholder returns for the company are very impressive for the last three years. Albeit, EPS growth has not been as impressive over the same time frame. So, although we would’ve liked to see stronger EPS growth, positive investor returns lead us to believe CEO compensation is reasonable.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for BE Semiconductor Industries that investors should look into moving forward.
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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