Is Peach Property Group AG's (VTX:PEAN) CEO Paid Enough Relative To Peers?

Simply Wall St
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Thomas Wolfensberger became the CEO of Peach Property Group AG (VTX:PEAN) in 2006. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Peach Property Group

How Does Thomas Wolfensberger's Compensation Compare With Similar Sized Companies?

Our data indicates that Peach Property Group AG is worth CHF238m, and total annual CEO compensation was reported as CHF1.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CHF400k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CHF99m to CHF395m. The median total CEO compensation was CHF782k.

It would therefore appear that Peach Property Group AG pays Thomas Wolfensberger 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Peach Property Group has changed from year to year.

SWX:PEAN CEO Compensation, November 19th 2019
SWX:PEAN CEO Compensation, November 19th 2019

Is Peach Property Group AG Growing?

On average over the last three years, Peach Property Group AG has grown earnings per share (EPS) by 49% each year (using a line of best fit). In the last year, its revenue is down 38%.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.

Has Peach Property Group AG Been A Good Investment?

Boasting a total shareholder return of 132% over three years, Peach Property Group AG has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared total CEO remuneration at Peach Property Group AG with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Peach Property Group shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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 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.

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