It Looks Like The CEO Of Azkoyen, S.A. (BME:AZK) May Be Underpaid Compared To Peers

Key Insights

• Azkoyen to hold its Annual General Meeting on 30th of May
• CEO Eduardo Unzu Martínez's total compensation includes salary of €41.0k
• The overall pay is 87% below the industry average
• Over the past three years, Azkoyen's EPS grew by 13% and over the past three years, the total shareholder return was 59%

Our free stock report includes 1 warning sign investors should be aware of before investing in Azkoyen. Read for free now.

The solid performance at Azkoyen, S.A. (BME:AZK) has been impressive and shareholders will probably be pleased to know that CEO Eduardo Unzu Martínez has delivered. At the upcoming AGM on 30th of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Azkoyen

Comparing Azkoyen, S.A.'s CEO Compensation With The Industry

At the time of writing, our data shows that Azkoyen, S.A. has a market capitalization of €206m, and reported total annual CEO compensation of €77k for the year to December 2024. We note that's an increase of 10.0% above last year. In particular, the salary of €41.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the Spanish Machinery industry with market caps ranging from €88m to €352m, we found that the median CEO total compensation was €582k. Accordingly, Azkoyen pays its CEO under the industry median.

On an industry level, roughly 54% of total compensation represents salary and 46% is other remuneration. There isn't a significant difference between Azkoyen and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Azkoyen, S.A.'s Growth

Over the past three years, Azkoyen, S.A. has seen its earnings per share (EPS) grow by 13% per year. Its revenue is up 3.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Azkoyen, S.A. Been A Good Investment?

Most shareholders would probably be pleased with Azkoyen, S.A. for providing a total return of 59% over three years. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Azkoyen that you should be aware of before investing.

Important note: Azkoyen 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.