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Is BE Semiconductor Industries N.V.’s (AMS:BESI) CEO Paid Enough Relative To Peers?

Ajay Mannan

Richard Blickman has been the CEO of BE Semiconductor Industries N.V. (AMS:BESI) since 1995. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for BE Semiconductor Industries

How Does Richard Blickman’s Compensation Compare With Similar Sized Companies?

Our data indicates that BE Semiconductor Industries N.V. is worth €1.3b, and total annual CEO compensation is €4.3m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at €1.3m. We examined companies with market caps from €877m to €2.8b, and discovered that the median CEO compensation of that group was €1.4m.

As you can see, Richard Blickman is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean BE Semiconductor Industries N.V. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at BE Semiconductor Industries has changed from year to year.

ENXTAM:BESI CEO Compensation January 7th 19

Is BE Semiconductor Industries N.V. Growing?

Over the last three years BE Semiconductor Industries N.V. has grown its earnings per share (EPS) by an average of 52% per year (using a line of best fit). It achieved revenue growth of 10% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has BE Semiconductor Industries N.V. Been A Good Investment?

I think that the total shareholder return of 155%, over three years, would leave most BE Semiconductor Industries N.V. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared total CEO remuneration at BE Semiconductor Industries N.V. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if BE Semiconductor Industries insiders are buying or selling shares.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.