Should You Worry About BKW AG's (VTX:BKW) CEO Pay Cheque?

In 2013 Suzanne Thoma was appointed CEO of BKW AG (VTX:BKW). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for BKW

How Does Suzanne Thoma's Compensation Compare With Similar Sized Companies?

Our data indicates that BKW AG is worth CHF3.9b, and total annual CEO compensation was reported as CHF2.0m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CHF780k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CHF2.0b to CHF6.4b, we found the median CEO total compensation was CHF1.6m.

So Suzanne Thoma is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You might want to check this free visual report on analyst forecasts for future earnings.

The graphic below shows how CEO compensation at BKW has changed from year to year.

Is BKW AG Growing?

On average over the last three years, BKW AG has shrunk earnings per share by 14% each year (measured with a line of best fit). In the last year, its revenue is up 10%.

Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

Has BKW AG Been A Good Investment?

Boasting a total shareholder return of 73% over three years, BKW AG has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Suzanne Thoma is paid around the same as most CEOs of similar size companies.

We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we think most shareholders wouldn't be too worried about CEO compensation, which is close to the median for similar sized companies. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at BKW.

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.