Stéphane Bonvin has been the CEO of Investis Holding SA (VTX:IREN) since 2015, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Investis Holding.
How Does Total Compensation For Stéphane Bonvin Compare With Other Companies In The Industry?
At the time of writing, our data shows that Investis Holding SA has a market capitalization of CHF1.1b, and reported total annual CEO compensation of CHF1.1m for the year to December 2019. We note that’s an increase of 17% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF455k.
In comparison with other companies in the industry with market capitalizations ranging from CHF365m to CHF1.5b, the reported median CEO total compensation was CHF1.1m. So it looks like Investis Holding compensates Stéphane Bonvin in line with the median for the industry. Moreover, Stéphane Bonvin also holds CHF831m worth of Investis Holding stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. In Investis Holding’s case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It’s important to note that a slant towards non-salary compensation suggests that total pay is tied to the company’s performance.
A Look at Investis Holding SA’s Growth Numbers
Over the past three years, Investis Holding SA has seen its earnings per share (EPS) grow by 52% per year. In the last year, its revenue is down 5.1%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Investis Holding SA Been A Good Investment?
Boasting a total shareholder return of 64% over three years, Investis Holding SA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we touched on above, Investis Holding SA is currently paying a compensation that’s close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. Although the pay is close to the industry median, overall performance is excellent, so we don’t think the CEO is paid too generously. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Investis Holding we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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