Yahoo Finance We Take A Look At Why Masterflex SE's (ETR:MZX) CEO Compensation Is Well Earned
Key Insights
Masterflex's Annual General Meeting to take place on 5th of July
Total pay for CEO Andreas Bastin includes €400.0k salary
The overall pay is comparable to the industry average
Over the past three years, Masterflex's EPS grew by 96% and over the past three years, the total shareholder return was 71%
It would be hard to discount the role that CEO Andreas Bastin has played in delivering the impressive results at Masterflex SE (ETR:MZX) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 5th of July. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for Masterflex
Comparing Masterflex SE's CEO Compensation With The Industry
At the time of writing, our data shows that Masterflex SE has a market capitalization of €106m, and reported total annual CEO compensation of €688k for the year to December 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is €400.0k, represents a considerable chunk of the total compensation being paid.
On comparing similar-sized companies in the German Machinery industry with market capitalizations below €187m, we found that the median total CEO compensation was €545k. From this we gather that Andreas Bastin is paid around the median for CEOs in the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €400k | €400k | 58% |
Other | €288k | €282k | 42% |
Total Compensation | €688k | €682k | 100% |
On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. It's interesting to note that Masterflex pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Masterflex SE's Growth Numbers
Masterflex SE has seen its earnings per share (EPS) increase by 96% a year over the past three years. It saw its revenue drop 4.1% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Masterflex SE Been A Good Investment?
Most shareholders would probably be pleased with Masterflex SE for providing a total return of 71% 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.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Masterflex 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.
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