It's Unlikely That Georg Fischer AG's (VTX:GF) CEO Will See A Huge Pay Rise This Year

Key Insights

• Georg Fischer will host its Annual General Meeting on 17th of April
• Salary of CHF939.0k is part of CEO Andreas Muller's total remuneration
• The total compensation is 50% higher than the average for the industry
• Over the past three years, Georg Fischer's EPS grew by 27% and over the past three years, the total shareholder return was 6.2%

CEO Andreas Muller has done a decent job of delivering relatively good performance at Georg Fischer AG (VTX:GF) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Georg Fischer

How Does Total Compensation For Andreas Muller Compare With Other Companies In The Industry?

Our data indicates that Georg Fischer AG has a market capitalization of CHF5.4b, and total annual CEO compensation was reported as CHF3.2m for the year to December 2023. We note that's a small decrease of 3.6% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF939k.

In comparison with other companies in the Swiss Machinery industry with market capitalizations ranging from CHF3.7b to CHF11b, the reported median CEO total compensation was CHF2.2m. Hence, we can conclude that Andreas Muller is remunerated higher than the industry median. Furthermore, Andreas Muller directly owns CHF1.4m worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	CHF939k	CHF920k	29%
Other	CHF2.3m	CHF2.4m	71%
Total Compensation	CHF3.2m	CHF3.3m	100%

On an industry level, around 47% of total compensation represents salary and 53% is other remuneration. It's interesting to note that Georg Fischer allocates a smaller portion of compensation to salary 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.

Georg Fischer AG's Growth

Georg Fischer AG's earnings per share (EPS) grew 27% per year over the last three years. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Georg Fischer AG Been A Good Investment?

Georg Fischer AG has generated a total shareholder return of 6.2% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Georg Fischer we think you should know about.

Switching gears from Georg Fischer, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.