Shareholders association VEB is questioning ASML’s 2020 investments. These proved to be less profitable for shareholders.
ASML built factories and invested in Research & Development last year. This benefited the regional economy. But it also resulted in the chip machine manufaturer making less profit. ASML’s top management, including CEO Peter Wennink, received hefty bonuses at the end of the year too.
According to VEB, these bonuses amounted to €4.4 million. The criteria for that bonus, including making a profit, had been upwardly adjusted. ASML’s supervisory board wanted to prevent its top management from being ‘punished’ for making investments.
Lower shareholder profit
ASML’s investments mean shareholders earn lower profits. That’s from the money they invested in the company. So, VEB wants to know why these seemingly urgent investments were made. VEB also wants ASML’s management goals to be more transparent. What do they have to do to receive bonuses?
ASML announced that these weren’t ‘unexpected, additional’ investments. The technology giant admits it’s become more ambitious. But that’s primarily due to increased client demand for its products.
ASML adds that specifying innovation and market position targets could give competitors an edge. That’s something the Veldhoven-based company wants to avoid. ASML, therefore, can’t let its shareholders in on these goals’ details.
VEB represents some 35,000 shareholders in various companies. Its website states that, in recent years, it’s provided billions of euros in ‘compensation’ for investors.
Source: Studio040
Translator: Bob
Editor: Melinda Walraven
