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

Key Insights

• Singulus Technologies' Annual General Meeting to take place on 25th of July
• Total pay for CEO Stefan Rinck includes €440.0k salary
• The total compensation is 34% higher than the average for the industry
• Singulus Technologies' three-year loss to shareholders was 73% while its EPS grew by 73% 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. The AGM coming up on the 25th of July could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. 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

According to our data, Singulus Technologies AG has a market capitalization of €12m, and paid its CEO total annual compensation worth €702k over the year to December 2023. Notably, that's a decrease of 12% over the year before. We note that the salary portion, which stands at €440.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the German Machinery industry with market capitalizations under €184m, the reported median total CEO compensation was €523k. This suggests that Stefan Rinck is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	€440k	€440k	63%
Other	€262k	€362k	37%
Total Compensation	€702k	€802k	100%

On an industry level, around 42% of total compensation represents salary and 58% is other remuneration. It's interesting to note that Singulus Technologies pays out a greater portion of remuneration through salary, compared to the industry. 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.

Singulus Technologies AG's Growth

Over the past three years, Singulus Technologies AG has seen its earnings per share (EPS) grow by 73% per year. In the last year, its revenue is down 17%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Singulus Technologies AG Been A Good Investment?

With a total shareholder return of -73% over three years, Singulus Technologies AG shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. 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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which is significant) in Singulus Technologies we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com