Does Swiss Prime Site AG's (VTX:SPSN) CEO Pay Compare Well With Peers?
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René Zahnd became the CEO of Swiss Prime Site AG (VTX:SPSN) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Swiss Prime Site
How Does René Zahnd's Compensation Compare With Similar Sized Companies?
According to our data, Swiss Prime Site AG has a market capitalization of CHF6.7b, and pays its CEO total annual compensation worth CHF1.8m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CHF900k. We looked at a group of companies with market capitalizations from CHF3.9b to CHF12b, and the median CEO total compensation was CHF2.1m.
That means René Zahnd receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Swiss Prime Site has changed from year to year.
Is Swiss Prime Site AG Growing?
Over the last three years Swiss Prime Site AG has shrunk its earnings per share by an average of 4.7% per year (measured with a line of best fit). Its revenue is up 6.5% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Swiss Prime Site AG Been A Good Investment?
Swiss Prime Site AG has served shareholders reasonably well, with a total return of 17% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Remuneration for René Zahnd is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. Shareholders may want to check for free if Swiss Prime Site insiders are buying or selling shares.
If you want to buy a stock that is better than Swiss Prime Site, this free list of high return, low debt companies is a great place to look.
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.
