TIE Kinetix N.V.'s (AMS:TIE) CEO Compensation Is Looking A Bit Stretched At The Moment

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 26 March 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for TIE Kinetix

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

At the time of writing, our data shows that TIE Kinetix N.V. has a market capitalization of €32m, and reported total annual CEO compensation of €556k for the year to September 2020. That's a notable increase of 42% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €250k.

For comparison, other companies in the industry with market capitalizations below €168m, reported a median total CEO compensation of €280k. Accordingly, our analysis reveals that TIE Kinetix N.V. pays Jan Sundelin north of the industry median. Furthermore, Jan Sundelin directly owns €677k worth of shares in the company.

Component	2020	2019	Proportion (2020)
Salary	€250k	€250k	45%
Other	€306k	€142k	55%
Total Compensation	€556k	€392k	100%

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. In TIE Kinetix's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at TIE Kinetix N.V.'s Growth Numbers

TIE Kinetix N.V. has seen its earnings per share (EPS) increase by 75% a year over the past three years. Its revenue is up 8.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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?

We think that the total shareholder return of 124%, over three years, would leave most TIE Kinetix 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 2 warning signs for TIE Kinetix that investors should think about before committing capital to this stock.

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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