Yahoo Finance Increases to Aperam S.A.'s (AMS:APAM) CEO Compensation Might Cool off for now
Key Insights
Aperam will host its Annual General Meeting on 30th of April
Salary of €850.0k is part of CEO Tim Di Maulo's total remuneration
The total compensation is 82% higher than the average for the industry
Over the past three years, Aperam's EPS grew by 8.6% and over the past three years, the total loss to shareholders 30%
The underwhelming share price performance of Aperam S.A. (AMS:APAM) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30th of April. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
Check out our latest analysis for Aperam
How Does Total Compensation For Tim Di Maulo Compare With Other Companies In The Industry?
At the time of writing, our data shows that Aperam S.A. has a market capitalization of €2.0b, and reported total annual CEO compensation of €2.6m for the year to December 2023. We note that's a decrease of 38% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €850k.
For comparison, other companies in the the Netherlands Metals and Mining industry with market capitalizations ranging between €934m and €3.0b had a median total CEO compensation of €1.4m. Accordingly, our analysis reveals that Aperam S.A. pays Tim Di Maulo north of the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €850k | €794k | 33% |
Other | €1.7m | €3.4m | 67% |
Total Compensation | €2.6m | €4.2m | 100% |
On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. In Aperam's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.
A Look at Aperam S.A.'s Growth Numbers
Aperam S.A.'s earnings per share (EPS) grew 8.6% per year over the last three years. Its revenue is down 19% over the previous year.
We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Aperam S.A. Been A Good Investment?
With a three year total loss of 30% for the shareholders, Aperam S.A. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Aperam that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
