Here's Why Tronic's Microsystems SA's (EPA:ALTRO) CEO May Have Their Pay Bumped Up

Key Insights

• Tronic's Microsystems will host its Annual General Meeting on 24th of September
• Salary of €109.7k is part of CEO Julien Bon's total remuneration
• The overall pay is 66% below the industry average
• Tronic's Microsystems' EPS grew by 111% over the past three years while total shareholder return over the past three years was 1.5%

The decent performance at Tronic's Microsystems SA (EPA:ALTRO) recently will please most shareholders as they go into the AGM coming up on 24th of September. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for Tronic's Microsystems

How Does Total Compensation For Julien Bon Compare With Other Companies In The Industry?

Our data indicates that Tronic's Microsystems SA has a market capitalization of €49m, and total annual CEO compensation was reported as €133k for the year to March 2024. Notably, that's an increase of 8.3% over the year before. In particular, the salary of €109.7k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the French Semiconductor industry with market capitalizations below €180m, reported a median total CEO compensation of €392k. In other words, Tronic's Microsystems pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	€110k	€105k	83%
Other	€23k	€17k	17%
Total Compensation	€133k	€122k	100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Tronic's Microsystems pays out 83% of remuneration in the form of a salary, significantly higher than the industry average. 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 Tronic's Microsystems SA's Growth Numbers

Tronic's Microsystems SA has seen its earnings per share (EPS) increase by 111% a year over the past three years. Its revenue is up 6.1% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Tronic's Microsystems SA Been A Good Investment?

With a total shareholder return of 1.5% over three years, Tronic's Microsystems SA has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term 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. We identified 3 warning signs for Tronic's Microsystems (1 is a bit unpleasant!) that you should be aware of before investing here.

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.