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Is Bell Food Group AG (VTX:BELL) Overpaying Its CEO?

Simply Wall St

Lorenz Wyss is the CEO of Bell Food Group AG (VTX:BELL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Bell Food Group

How Does Lorenz Wyss's Compensation Compare With Similar Sized Companies?

According to our data, Bell Food Group AG has a market capitalization of CHF1.4b, and paid its CEO total annual compensation worth CHF775k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CHF607k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CHF991m to CHF3.2b. The median total CEO compensation was CHF1.2m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Bell Food Group has changed from year to year.

SWX:BELL CEO Compensation, November 16th 2019

Is Bell Food Group AG Growing?

Over the last three years Bell Food Group AG has shrunk its earnings per share by an average of 22% per year (measured with a line of best fit). It achieved revenue growth of 4.7% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Bell Food Group AG Been A Good Investment?

With a three year total loss of 24%, Bell Food Group AG would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

It looks like Bell Food Group AG pays its CEO less than similar sized companies.

The compensation paid to Lorenz Wyss is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bell Food Group (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.