Here's What We Learned About The CEO Pay At BE Semiconductor Industries N.V. (AMS:BESI)

By
Simply Wall St
Published
November 21, 2020
ENXTAM:BESI

This article will reflect on the compensation paid to Richard Blickman who has served as CEO of BE Semiconductor Industries N.V. (AMS:BESI) since 1995. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for BE Semiconductor Industries.

Check out our latest analysis for BE Semiconductor Industries

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

Our data indicates that BE Semiconductor Industries N.V. has a market capitalization of €3.0b, and total annual CEO compensation was reported as €4.5m for the year to December 2019. That's a notable decrease of 33% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €600k.

For comparison, other companies in the same industry with market capitalizations ranging between €1.7b and €5.4b had a median total CEO compensation of €1.4m. This suggests that Richard Blickman is paid more than the median for the industry. What's more, Richard Blickman holds €74m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20192018Proportion (2019)
Salary €600k €600k 13%
Other €3.9m €6.2m 87%
Total Compensation€4.5m €6.8m100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. BE Semiconductor Industries pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ENXTAM:BESI CEO Compensation November 21st 2020

BE Semiconductor Industries N.V.'s Growth

BE Semiconductor Industries N.V. has reduced its earnings per share by 5.1% a year over the last three years. Its revenue is up 17% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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?

Most shareholders would probably be pleased with BE Semiconductor Industries N.V. for providing a total return of 37% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As previously discussed, Richard is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Still, shareholder returns over the last three years,and recent revenue growth have been trending northwards. Sadly, EPS growth did not follow suit, remaining during this time. All things considered, although EPS growth would've been nice, the positive investor returns and revenue growth lead us to believe Richard is appropriately paid.

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 2 warning signs 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. 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.
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