Yahoo Finance Why We Think Shareholders May Be Considering Bumping Up Bachem Holding AG's (VTX:BANB) CEO Compensation
Key Insights
Bachem Holding will host its Annual General Meeting on 19th of April
Salary of CHF298.0k is part of CEO Thomas Meier's total remuneration
The overall pay is 78% below the industry average
Over the past three years, Bachem Holding's EPS grew by 20% and over the past three years, the total shareholder return was 127%
The impressive results at Bachem Holding AG (VTX:BANB) recently will be great news for shareholders. At the upcoming AGM on 19th of April, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
View our latest analysis for Bachem Holding
Comparing Bachem Holding AG's CEO Compensation With The Industry
Our data indicates that Bachem Holding AG has a market capitalization of CHF7.0b, and total annual CEO compensation was reported as CHF604k for the year to December 2022. That's slightly lower by 3.7% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF298k.
In comparison with other companies in the Swiss Life Sciences industry with market capitalizations ranging from CHF3.6b to CHF11b, the reported median CEO total compensation was CHF2.8m. In other words, Bachem Holding pays its CEO lower than the industry median. Furthermore, Thomas Meier directly owns CHF1.4m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CHF298k | CHF278k | 49% |
Other | CHF306k | CHF349k | 51% |
Total Compensation | CHF604k | CHF627k | 100% |
On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. It's interesting to note that Bachem Holding pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Bachem Holding AG's Growth Numbers
Bachem Holding AG's earnings per share (EPS) grew 20% per year over the last three years. In the last year, its revenue is up 5.7%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Bachem Holding AG Been A Good Investment?
Most shareholders would probably be pleased with Bachem Holding AG for providing a total return of 127% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Bachem Holding that investors should look into moving forward.
Important note: Bachem Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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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