It's Unlikely That BE Semiconductor Industries N.V.'s (AMS:BESI) CEO Will See A Huge Pay Rise This Year

Key Insights

• BE Semiconductor Industries will host its Annual General Meeting on 25th of April
• Total pay for CEO Richard Blickman includes €650.0k salary
• The overall pay is 109% above the industry average
• BE Semiconductor Industries' total shareholder return over the past three years was 116% while its EPS grew by 8.0% over the past three years

CEO Richard Blickman has done a decent job of delivering relatively good performance at BE Semiconductor Industries N.V. (AMS:BESI) recently. As shareholders go into the upcoming AGM on 25th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for BE Semiconductor Industries

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

At the time of writing, our data shows that BE Semiconductor Industries N.V. has a market capitalization of €11b, and reported total annual CEO compensation of €9.0m for the year to December 2023. Notably, that's an increase of 8.0% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €650k.

On comparing similar companies in the the Netherlands Semiconductor industry with market capitalizations above €7.5b, we found that the median total CEO compensation was €4.3m. Hence, we can conclude that Richard Blickman is remunerated higher than the industry median. Furthermore, Richard Blickman directly owns €172m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	€650k	€600k	7%
Other	€8.3m	€7.7m	93%
Total Compensation	€9.0m	€8.3m	100%

Speaking on an industry level, nearly 46% of total compensation represents salary, while the remainder of 54% is other remuneration. BE Semiconductor Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 past three years, BE Semiconductor Industries N.V. has seen its earnings per share (EPS) grow by 8.0% per year. Its revenue is down 20% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BE Semiconductor Industries N.V. Been A Good Investment?

We think that the total shareholder return of 116%, 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for BE Semiconductor Industries that investors should be aware of in a dynamic business environment.

Switching gears from BE Semiconductor Industries, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.