Why Bucher Industries AG’s (VTX:BUCN) CEO Pay Matters To You

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In 2016 Jacques Sanche was appointed CEO of Bucher Industries AG (VTX:BUCN). 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.

See our latest analysis for Bucher Industries

How Does Jacques Sanche’s Compensation Compare With Similar Sized Companies?

According to our data, Bucher Industries AG has a market capitalization of CHF3.2b, and pays its CEO total annual compensation worth CHF2.1m. (This number is for the twelve months until December 2016). While we always look at total compensation first, we note that the salary component is less, at CHF700k. When we examined a selection of companies with market caps ranging from CHF2.0b to CHF6.4b, we found the median CEO compensation was CHF1.8m.

So Jacques Sanche receives a similar amount to the median CEO pay, amongst 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.

You can see a visual representation of the CEO compensation at Bucher Industries, below.

SWX:BUCN CEO Compensation, February 22nd 2019
SWX:BUCN CEO Compensation, February 22nd 2019

Is Bucher Industries AG Growing?

On average over the last three years, Bucher Industries AG has grown earnings per share (EPS) by 6.3% each year (using a line of best fit). In the last year, its revenue is up 18%.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. Although we’ll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.

Has Bucher Industries AG Been A Good Investment?

Most shareholders would probably be pleased with Bucher Industries AG for providing a total return of 51% over three years. 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…

Remuneration for Jacques Sanche is close enough to the median pay for a CEO of a similar sized company .

While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling Bucher Industries shares (free trial).

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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