We Think Some Shareholders May Hesitate To Increase Singulus Technologies AG's (ETR:SNG) CEO Compensation

Key Insights

• Singulus Technologies to hold its Annual General Meeting on 14th of December
• Total pay for CEO Stefan Rinck includes €440.0k salary
• Total compensation is 186% above industry average
• Singulus Technologies' three-year loss to shareholders was 53% while its EPS grew by 81% over the past three years

The underwhelming share price performance of Singulus Technologies AG (ETR:SNG) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 14th of December. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Singulus Technologies

Comparing Singulus Technologies AG's CEO Compensation With The Industry

Our data indicates that Singulus Technologies AG has a market capitalization of €16m, and total annual CEO compensation was reported as €802k for the year to December 2022. We note that's an increase of 11% above last year. Notably, the salary which is €440.0k, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the German Machinery industry with market capitalizations below €185m, we found that the median total CEO compensation was €281k. Hence, we can conclude that Stefan Rinck is remunerated higher than the industry median.

Component	2022	2021	Proportion (2022)
Salary	€440k	€440k	55%
Other	€362k	€283k	45%
Total Compensation	€802k	€723k	100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. There isn't a significant difference between Singulus Technologies and the broader market, in terms of salary allocation in the overall compensation package. 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.

A Look at Singulus Technologies AG's Growth Numbers

Singulus Technologies AG's earnings per share (EPS) grew 81% per year over the last three years. In the last year, its revenue is down 1.8%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Singulus Technologies AG Been A Good Investment?

With a total shareholder return of -53% over three years, Singulus Technologies AG shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for Singulus Technologies you should be aware of, and 3 of them shouldn't be ignored.

Important note: Singulus Technologies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.