We Think Some Shareholders May Hesitate To Increase AIXTRON SE's (ETR:AIXA) CEO Compensation

Key Insights

• AIXTRON will host its Annual General Meeting on 15th of May
• Total pay for CEO Felix Grawert includes €430.0k salary
• Total compensation is 685% above industry average
• Over the past three years, AIXTRON's EPS grew by 56% and over the past three years, the total shareholder return was 53%

CEO Felix Grawert has done a decent job of delivering relatively good performance at AIXTRON SE (ETR:AIXA) recently. As shareholders go into the upcoming AGM on 15th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for AIXTRON

How Does Total Compensation For Felix Grawert Compare With Other Companies In The Industry?

According to our data, AIXTRON SE has a market capitalization of €2.5b, and paid its CEO total annual compensation worth €4.3m over the year to December 2023. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €430k.

In comparison with other companies in the German Semiconductor industry with market capitalizations ranging from €1.9b to €6.0b, the reported median CEO total compensation was €545k. Hence, we can conclude that Felix Grawert is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	€430k	€430k	10%
Other	€3.8m	€3.9m	90%
Total Compensation	€4.3m	€4.4m	100%

Speaking on an industry level, nearly 31% of total compensation represents salary, while the remainder of 69% is other remuneration. It's interesting to note that AIXTRON allocates a smaller portion of compensation to salary 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 AIXTRON SE's Growth Numbers

AIXTRON SE has seen its earnings per share (EPS) increase by 56% a year over the past three years. In the last year, its revenue is up 49%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing 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 AIXTRON SE Been A Good Investment?

Boasting a total shareholder return of 53% over three years, AIXTRON SE has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in AIXTRON we think you should know about.

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.