It Looks Like The CEO Of VAT Group AG (VTX:VACN) May Be Underpaid Compared To Peers
Key Insights
VAT Group will host its Annual General Meeting on 16th of May
Total pay for CEO Mike Allison includes CHF550.0k salary
The total compensation is 43% less than the average for the industry
VAT Group's total shareholder return over the past three years was 111% while its EPS grew by 60% over the past three years
Shareholders will be pleased by the impressive results for VAT Group AG (VTX:VACN) recently and CEO Mike Allison has played a key role. This would be kept in mind at the upcoming AGM on 16th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for VAT Group
How Does Total Compensation For Mike Allison Compare With Other Companies In The Industry?
Our data indicates that VAT Group AG has a market capitalization of CHF9.7b, and total annual CEO compensation was reported as CHF1.5m for the year to December 2022. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF550k.
For comparison, other companies in the Swiss Machinery industry with market capitalizations above CHF7.1b, reported a median total CEO compensation of CHF2.6m. That is to say, Mike Allison is paid under the industry median. What's more, Mike Allison holds CHF1.7m worth of shares in the company in their own name.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CHF550k | CHF520k | 37% |
Other | CHF944k | CHF964k | 63% |
Total Compensation | CHF1.5m | CHF1.5m | 100% |
Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. VAT Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at VAT Group AG's Growth Numbers
Over the past three years, VAT Group AG has seen its earnings per share (EPS) grow by 60% per year. In the last year, its revenue is up 27%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has VAT Group AG Been A Good Investment?
Boasting a total shareholder return of 111% over three years, VAT Group AG has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for VAT Group that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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