René Rothen became the CEO of Adval Tech Holding AG (VTX:ADVN) in 2012. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does René Rothen's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Adval Tech Holding AG has a market cap of CHF120m, and is paying total annual CEO compensation of CHF668k. (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 CHF375k. We examined a group of similar sized companies, with market capitalizations of below CHF198m. The median CEO total compensation in that group is CHF675k.
So René Rothen is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Adval Tech Holding has changed over time.
Is Adval Tech Holding AG Growing?
Over the last three years Adval Tech Holding AG has shrunk its earnings per share by an average of 44% per year (measured with a line of best fit). In the last year, its revenue is down -9.0%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Adval Tech Holding AG Been A Good Investment?
With a three year total loss of 11%, Adval Tech Holding AG would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
René Rothen is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying Adval Tech Holding shares with their own money (free access).
Important note: Adval Tech Holding may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 email@example.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.