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Is ASM International NV's (AMS:ASM) CEO Paid Enough Relative To Peers?

Simply Wall St

Chuck del Prado became the CEO of ASM International NV (AMS:ASM) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for ASM International

How Does Chuck del Prado's Compensation Compare With Similar Sized Companies?

According to our data, ASM International NV has a market capitalization of €5.2b, and paid its CEO total annual compensation worth €2.3m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €669k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.6b to €11b. The median total CEO compensation was €2.3m.

That means Chuck del Prado receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at ASM International has changed over time.

ENXTAM:ASM CEO Compensation, January 12th 2020

Is ASM International NV Growing?

On average over the last three years, ASM International NV has grown earnings per share (EPS) by 17% each year (using a line of best fit). Its revenue is up 51% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has ASM International NV Been A Good Investment?

Most shareholders would probably be pleased with ASM International NV for providing a total return of 183% 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...

Chuck del Prado is paid around the same as most CEOs of similar size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying ASM International shares with their own money (free access).

If you want to buy a stock that is better than ASM International, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.