Should You Worry About Schmolz + Bickenbach AG's (VTX:STLN) CEO Salary Level?
Clemens Iller became the CEO of Schmolz + Bickenbach AG (VTX:STLN) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Schmolz + Bickenbach
How Does Clemens Iller's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Schmolz + Bickenbach AG has a market cap of CHF200m, and is paying total annual CEO compensation of €4.2m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at €1.2m. We examined companies with market caps from CHF99m to CHF397m, and discovered that the median CEO total compensation of that group was CHF805k.
Thus we can conclude that Clemens Iller receives more in total compensation than the median of a group of companies in the same market, and of similar size to Schmolz + Bickenbach AG. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Schmolz + Bickenbach, below.
Is Schmolz + Bickenbach AG Growing?
On average over the last three years, Schmolz + Bickenbach AG has grown earnings per share (EPS) by 51% each year (using a line of best fit). It achieved revenue growth of 8.6% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Schmolz + Bickenbach AG Been A Good Investment?
With a three year total loss of 69%, Schmolz + Bickenbach AG would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Schmolz + Bickenbach AG, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying Schmolz + Bickenbach shares with their own money (free access).
If you want to buy a stock that is better than Schmolz + Bickenbach, this free list of high return, low debt companies is a great place to look.
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.
