What Can We Learn About TIE Kinetix's (AMS:TIE) CEO Compensation?

This article will reflect on the compensation paid to Jan Sundelin who has served as CEO of TIE Kinetix N.V. (AMS:TIE) since 2008. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

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 €556k over the year to September 2020. That's a notable increase of 42% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €250k.

On comparing similar-sized companies in the industry with market capitalizations below €164m, we found that the median total CEO compensation was €285k. This suggests that Jan Sundelin is paid more than the median for the industry. What's more, Jan Sundelin holds €652k worth of shares in the company in their own name.

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. TIE Kinetix pays a modest slice of remuneration through salary, as compared 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.

TIE Kinetix N.V.'s Growth

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

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

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

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

To Conclude...

As we touched on above, TIE Kinetix N.V. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But EPS growth and shareholder returns have been top-notch for the past three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Jan's performance.

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.

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. 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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