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Is ASML Holding N.V.'s (AMS:ASML) CEO Pay Fair?

Simply Wall St

In 2013 Peter T. F. Wennink was appointed CEO of ASML Holding N.V. (AMS:ASML). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for ASML Holding

How Does Peter T. F. Wennink's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that ASML Holding N.V. has a market cap of €77b, and is paying total annual CEO compensation of €3.5m. (This number is for the twelve months until December 2018). That's a fairly small increase of 0.05% on year before. While we always look at total compensation first, we note that the salary component is less, at €978k. We looked at a group of companies with market capitalizations over €7.1b and the median CEO total compensation was €3.7m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

So Peter T. F. Wennink receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 ASML Holding has changed over time.

ENXTAM:ASML CEO Compensation, April 22nd 2019

Is ASML Holding N.V. Growing?

ASML Holding N.V. has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 17%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has ASML Holding N.V. Been A Good Investment?

Most shareholders would probably be pleased with ASML Holding N.V. for providing a total return of 121% 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...

Peter T. F. Wennink is paid around what is normal the leaders of larger companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying ASML Holding shares with their own money (free access).

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

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.

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. Thank you for reading.