In 2013 Peter T. F. Wennink was appointed CEO of ASML Holding N.V. (AMS:ASML). First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. 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.
How Does Peter T. F. Wennink's Compensation Compare With Similar Sized Companies?
According to our data, ASML Holding N.V. has a market capitalization of €102b, and paid its CEO total annual compensation worth €3.5m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €978k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over €7.2b, we found that their median CEO total compensation was €3.5m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Peter T. F. Wennink is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at ASML Holding, below.
Is ASML Holding N.V. Growing?
On average over the last three years, ASML Holding N.V. has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is up 6.4% over 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has ASML Holding N.V. Been A Good Investment?
Boasting a total shareholder return of 171% over three years, ASML Holding N.V. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Peter T. F. Wennink is paid around what is normal the leaders of larger companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying ASML Holding shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.