André Rüegg became the CEO of Bellevue Group AG (VTX:BBN) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does André Rüegg's Compensation Compare With Similar Sized Companies?
Our data indicates that Bellevue Group AG is worth CHF287m, and total annual CEO compensation was reported as CHF2.0m for the year to December 2019. Notably, that's an increase of 18% over the year before. While we always look at total compensation first, we note that the salary component is less, at CHF443k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from CHF97m to CHF389m, we found the median CEO total compensation was CHF802k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Bellevue Group stands. Talking in terms of the sector, salary represented approximately 40% of total compensation out of all the companies we analysed, while other remuneration made up 60% of the pie. Readers will want to know that Bellevue Group pays a modest slice of remuneration through salary, as compared to the wider sector.
It would therefore appear that Bellevue Group AG pays André Rüegg more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see, below, how CEO compensation at Bellevue Group has changed over time.
Is Bellevue Group AG Growing?
Bellevue Group AG has seen earnings per share (EPS) move positively by an average of 43% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Bellevue Group AG Been A Good Investment?
Most shareholders would probably be pleased with Bellevue Group AG for providing a total return of 59% over three years. 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.
We compared total CEO remuneration at Bellevue Group AG with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Looking into other areas, we've picked out 4 warning signs for Bellevue Group that investors should think about before committing capital to this stock.
If you want to buy a stock that is better than Bellevue Group, this free list of high return, low debt companies is a great place to look.
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