Shareholders Will Probably Hold Off On Increasing TIE Kinetix N.V.'s (AMS:TIE) CEO Compensation For The Time Being

Under the guidance of CEO Jan Sundelin, TIE Kinetix N.V. (AMS:TIE) has performed reasonably well recently. As shareholders go into the upcoming AGM on 25 March 2022, 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 TIE Kinetix

How Does Total Compensation For Jan Sundelin Compare With Other Companies In The Industry?

According to our data, TIE Kinetix N.V. has a market capitalization of €31m, and paid its CEO total annual compensation worth €727k over the year to September 2021. We note that's an increase of 31% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €276k.

For comparison, other companies in the industry with market capitalizations below €181m, reported a median total CEO compensation of €285k. Hence, we can conclude that Jan Sundelin is remunerated higher than the industry median. What's more, Jan Sundelin holds €862k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	€276k	€250k	38%
Other	€451k	€306k	62%
Total Compensation	€727k	€556k	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. TIE Kinetix sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

TIE Kinetix N.V.'s Growth

Over the past three years, TIE Kinetix N.V. has seen its earnings per share (EPS) grow by 49% per year. Its revenue is down 4.5% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has TIE Kinetix N.V. Been A Good Investment?

Most shareholders would probably be pleased with TIE Kinetix N.V. for providing a total return of 150% over three years. 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for TIE Kinetix that investors should look into moving forward.

Switching gears from TIE Kinetix, 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.