AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's (VIE:ATS) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
- AT & S Austria Technologie & Systemtechnik's Annual General Meeting to take place on 4th of July
- Total pay for CEO Andreas Gerstenmayer includes €647.0k salary
- Total compensation is 123% above industry average
- Over the past three years, AT & S Austria Technologie & Systemtechnik's EPS fell by 35% and over the past three years, the total loss to shareholders 37%
Shareholders will probably not be too impressed with the underwhelming results at AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 4th of July. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for AT & S Austria Technologie & Systemtechnik
Comparing AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's CEO Compensation With The Industry
At the time of writing, our data shows that AT & S Austria Technologie & Systemtechnik Aktiengesellschaft has a market capitalization of €852m, and reported total annual CEO compensation of €1.5m for the year to March 2024. We note that's a decrease of 50% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €647k.
On comparing similar companies from the Austria Electronic industry with market caps ranging from €375m to €1.5b, we found that the median CEO total compensation was €694k. Accordingly, our analysis reveals that AT & S Austria Technologie & Systemtechnik Aktiengesellschaft pays Andreas Gerstenmayer north of the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €647k | €647k | 42% |
| Other | €902k | €2.4m | 58% |
| Total Compensation | €1.5m | €3.1m | 100% |
Speaking on an industry level, nearly 62% of total compensation represents salary, while the remainder of 38% is other remuneration. In AT & S Austria Technologie & Systemtechnik's case, non-salary compensation represents a greater slice of total remuneration, 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 AT & S Austria Technologie & Systemtechnik Aktiengesellschaft's Growth Numbers
Over the last three years, AT & S Austria Technologie & Systemtechnik Aktiengesellschaft has shrunk its earnings per share by 35% per year. In the last year, its revenue is down 13%.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has AT & S Austria Technologie & Systemtechnik Aktiengesellschaft Been A Good Investment?
Few AT & S Austria Technologie & Systemtechnik Aktiengesellschaft shareholders would feel satisfied with the return of -37% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
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've identified 2 warning signs for AT & S Austria Technologie & Systemtechnik that investors should be aware of in a dynamic business environment.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
About WBAG:ATS
AT & S Austria Technologie & Systemtechnik
Manufactures and distributes printed circuit boards in Austria, Germany, rest of Europe, China, rest of Asia, and the Americas.
High growth potential and good value.
