It Looks Like LPKF Laser & Electronics SE's (ETR:LPK) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• LPKF Laser & Electronics will host its Annual General Meeting on 4th of June
• Total pay for CEO Klaus Fiedler includes €350.0k salary
• The overall pay is 36% above the industry average
• Over the past three years, LPKF Laser & Electronics' EPS fell by 51% and over the past three years, the total loss to shareholders 31%

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The results at LPKF Laser & Electronics SE (ETR:LPK) have been quite disappointing recently and CEO Klaus Fiedler bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 4th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for LPKF Laser & Electronics

Comparing LPKF Laser & Electronics SE's CEO Compensation With The Industry

According to our data, LPKF Laser & Electronics SE has a market capitalization of €200m, and paid its CEO total annual compensation worth €707k over the year to December 2024. That's just a smallish increase of 7.3% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €350k.

In comparison with other companies in the German Electronic industry with market capitalizations ranging from €89m to €354m, the reported median CEO total compensation was €522k. This suggests that Klaus Fiedler is paid more than the median for the industry.

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. There isn't a significant difference between LPKF Laser & Electronics and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at LPKF Laser & Electronics SE's Growth Numbers

Over the last three years, LPKF Laser & Electronics SE has shrunk its earnings per share by 51% per year. In the last year, its revenue is down 4.5%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 LPKF Laser & Electronics SE Been A Good Investment?

With a total shareholder return of -31% over three years, LPKF Laser & Electronics SE shareholders would by and large be disappointed. 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 one thing, but it is also interesting to check if the CEO is buying or selling LPKF Laser & Electronics (free visualization of insider trades).

Important note: LPKF Laser & Electronics 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.