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Is Schweiter Technologies AG's (VTX:SWTQ) CEO Being Overpaid?

Simply Wall St

Heinz Baumgartner became the CEO of Schweiter Technologies AG (VTX:SWTQ) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Schweiter Technologies

How Does Heinz Baumgartner's Compensation Compare With Similar Sized Companies?

According to our data, Schweiter Technologies AG has a market capitalization of CHF1.3b, and pays its CEO total annual compensation worth CHF1.5m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CHF800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CHF978m to CHF3.1b. The median total CEO compensation was CHF1.3m.

So Heinz Baumgartner is paid around the average of the companies we looked at. 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 Schweiter Technologies has changed from year to year.

SWX:SWTQ CEO Compensation, August 24th 2019

Is Schweiter Technologies AG Growing?

On average over the last three years, Schweiter Technologies AG has grown earnings per share (EPS) by 2.2% each year (using a line of best fit). Its revenue is up 8.3% over last year.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Schweiter Technologies AG Been A Good Investment?

Given the total loss of 7.4% over three years, many shareholders in Schweiter Technologies AG are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Heinz Baumgartner is paid around the same as most CEOs of similar size companies.

The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling Schweiter Technologies shares (free trial).

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.