Yahoo Finance

Key Insights

• Avantium will host its Annual General Meeting on 15th of May

• CEO Tom van Aken's total compensation includes salary of €300.0k

• The overall pay is comparable to the industry average

• Over the past three years, Avantium's EPS grew by 7.2% and over the past three years, the total loss to shareholders 26%

In the past three years, the share price of Avantium N.V. (AMS:AVTX) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 15th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Avantium

Comparing Avantium N.V.'s CEO Compensation With The Industry

At the time of writing, our data shows that Avantium N.V. has a market capitalization of €211m, and reported total annual CEO compensation of €615k for the year to December 2023. We note that's an increase of 11% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €300k.

On examining similar-sized companies in the Dutch Professional Services industry with market capitalizations between €93m and €372m, we discovered that the median CEO total compensation of that group was €479k. From this we gather that Tom van Aken is paid around the median for CEOs in the industry. Furthermore, Tom van Aken directly owns €481k worth of shares in the company.

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. Although there is a difference in how total compensation is set, Avantium more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Avantium N.V.'s Growth Numbers

Avantium N.V. has seen its earnings per share (EPS) increase by 7.2% a year over the past three years. It achieved revenue growth of 11% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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.