A Look At Arbonia's (VTX:ARBN) CEO Remuneration

This article will reflect on the compensation paid to Alexander von Witzleben who has served as CEO of Arbonia AG (VTX:ARBN) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Arbonia.

Check out our latest analysis for Arbonia

Comparing Arbonia AG's CEO Compensation With the industry

According to our data, Arbonia AG has a market capitalization of CHF649m, and paid its CEO total annual compensation worth CHF1.4m over the year to December 2019. Notably, that's a decrease of 15% over the year before. We note that the salary portion, which stands at CHF979.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from CHF375m to CHF1.5b, we found that the median CEO total compensation was CHF1.1m. So it looks like Arbonia compensates Alexander von Witzleben in line with the median for the industry. Furthermore, Alexander von Witzleben directly owns CHF3.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Arbonia pays out 69% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Arbonia AG's Growth

Arbonia AG has seen its earnings per share (EPS) increase by 49% a year over the past three years. In the last year, its revenue is up 3.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Arbonia AG Been A Good Investment?

With a three year total loss of 46% for the shareholders, Arbonia AG would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Alexander is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, earnings growth is positive over the same time frame. Considering positive earnings growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Arbonia that investors should look into moving forward.

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.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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