It's Unlikely That Aperam S.A.'s (AMS:APAM) CEO Will See A Huge Pay Rise This Year

Key Insights

• Aperam will host its Annual General Meeting on 30th of April
• Total pay for CEO Tim Di Maulo includes €850.0k salary
• The total compensation is 82% higher than the average for the industry
• Aperam's three-year loss to shareholders was 30% while its EPS grew by 8.6% over the past three years

Shareholders of Aperam S.A. (AMS:APAM) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Aperam

How Does Total Compensation For Tim Di Maulo Compare With Other Companies In The Industry?

At the time of writing, our data shows that Aperam S.A. has a market capitalization of €2.0b, and reported total annual CEO compensation of €2.6m for the year to December 2023. That's a notable decrease of 38% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €850k.

On comparing similar companies from the the Netherlands Metals and Mining industry with market caps ranging from €934m to €3.0b, we found that the median CEO total compensation was €1.4m. Accordingly, our analysis reveals that Aperam S.A. pays Tim Di Maulo north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	€850k	€794k	33%
Other	€1.7m	€3.4m	67%
Total Compensation	€2.6m	€4.2m	100%

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. Aperam pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Aperam S.A.'s Growth

Aperam S.A. has seen its earnings per share (EPS) increase by 8.6% a year over the past three years. In the last year, its revenue is down 19%.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Aperam S.A. Been A Good Investment?

With a three year total loss of 30% for the shareholders, Aperam S.A. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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 compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Aperam that investors should be aware of in a dynamic business environment.

Important note: Aperam 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.

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

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.