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Does Jungfraubahn Holding AG's (VTX:JFN) CEO Pay Matter?

Simply Wall St

Urs Kessler became the CEO of Jungfraubahn Holding AG (VTX:JFN) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

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See our latest analysis for Jungfraubahn Holding

How Does Urs Kessler's Compensation Compare With Similar Sized Companies?

According to our data, Jungfraubahn Holding AG has a market capitalization of CHF802m, and pays its CEO total annual compensation worth CHF809k. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CHF353k. We looked at a group of companies with market capitalizations from CHF402m to CHF1.6b, and the median CEO total compensation was CHF1.0m.

So Urs Kessler receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Jungfraubahn Holding, below.

SWX:JFN CEO Compensation, May 24th 2019

Is Jungfraubahn Holding AG Growing?

Over the last three years Jungfraubahn Holding AG has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). It achieved revenue growth of 9.7% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has Jungfraubahn Holding AG Been A Good Investment?

Most shareholders would probably be pleased with Jungfraubahn Holding AG for providing a total return of 38% 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...

Urs Kessler is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Jungfraubahn Holding shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.