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Richard Blickman has been the CEO of BE Semiconductor Industries N.V. (AMS:BESI) since 1995. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Richard Blickman’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that BE Semiconductor Industries N.V. has a market cap of €1.7b, and is paying total annual CEO compensation of €6.8m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at €1.4m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €885m to €2.8b. The median total CEO compensation was €1.6m.
As you can see, Richard Blickman is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean BE Semiconductor Industries N.V. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at BE Semiconductor Industries, below.
Is BE Semiconductor Industries N.V. Growing?
Over the last three years BE Semiconductor Industries N.V. has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). Its revenue is down -29% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
Has BE Semiconductor Industries N.V. Been A Good Investment?
I think that the total shareholder return of 141%, over three years, would leave most BE Semiconductor Industries N.V. shareholders smiling. 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.
We compared the total CEO remuneration paid by BE Semiconductor Industries N.V., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling BE Semiconductor Industries shares (free trial).
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.