BE Semiconductor Industries N.V.'s (AMS:BESI) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• BE Semiconductor Industries will host its Annual General Meeting on 23rd of April
• CEO Richard Blickman's total compensation includes salary of €700.0k
• The overall pay is 2,822% above the industry average
• Over the past three years, BE Semiconductor Industries' EPS fell by 15% and over the past three years, the total shareholder return was 65%

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Despite strong share price growth of 65% for BE Semiconductor Industries N.V. (AMS:BESI) over the last few years, earnings growth has been disappointing, which suggests something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 23rd of April. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for BE Semiconductor Industries

How Does Total Compensation For Richard Blickman Compare With Other Companies In The Industry?

According to our data, BE Semiconductor Industries N.V. has a market capitalization of €7.7b, and paid its CEO total annual compensation worth €17m over the year to December 2024. That's a notable increase of 86% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €700k.

In comparison with other companies in the the Netherlands Semiconductor industry with market capitalizations ranging from €3.5b to €11b, the reported median CEO total compensation was €570k. Hence, we can conclude that Richard Blickman is remunerated higher than the industry median. Moreover, Richard Blickman also holds €141m worth of BE Semiconductor Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€700k	€650k	4%
Other	€16m	€8.3m	96%
Total Compensation	€17m	€9.0m	100%

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but BE Semiconductor Industries paid Richard Blickman a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

BE Semiconductor Industries N.V.'s Growth

Over the last three years, BE Semiconductor Industries N.V. has shrunk its earnings per share by 15% per year. In the last year, its revenue is up 4.9%.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 BE Semiconductor Industries N.V. Been A Good Investment?

Boasting a total shareholder return of 65% over three years, BE Semiconductor Industries N.V. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

BE Semiconductor Industries primarily uses non-salary benefits to reward its CEO. While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us question whether these strong returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for BE Semiconductor Industries that you should be aware of before investing.

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.