Most Shareholders Will Probably Agree With Banque Cantonale Vaudoise's (VTX:BCVN) CEO Compensation

Key Insights

• Banque Cantonale Vaudoise's Annual General Meeting to take place on 8th of May
• Salary of CHF960.0k is part of CEO Pascal Kiener's total remuneration
• The overall pay is comparable to the industry average
• Banque Cantonale Vaudoise's EPS grew by 5.2% over the past three years while total shareholder return over the past three years was 40%

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Performance at Banque Cantonale Vaudoise (VTX:BCVN) has been reasonably good and CEO Pascal Kiener has done a decent job of steering the company in the right direction. 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 8th of May. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Banque Cantonale Vaudoise

How Does Total Compensation For Pascal Kiener Compare With Other Companies In The Industry?

According to our data, Banque Cantonale Vaudoise has a market capitalization of CHF8.7b, and paid its CEO total annual compensation worth CHF2.1m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF960k.

On comparing similar companies in the Swiss Banks industry with market capitalizations above CHF6.6b, we found that the median total CEO compensation was CHF2.5m. From this we gather that Pascal Kiener is paid around the median for CEOs in the industry. What's more, Pascal Kiener holds CHF2.7m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	CHF960k	CHF960k	46%
Other	CHF1.1m	CHF1.1m	54%
Total Compensation	CHF2.1m	CHF2.1m	100%

Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. Our data reveals that Banque Cantonale Vaudoise allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Banque Cantonale Vaudoise's Growth

Over the past three years, Banque Cantonale Vaudoise has seen its earnings per share (EPS) grow by 5.2% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Banque Cantonale Vaudoise Been A Good Investment?

Most shareholders would probably be pleased with Banque Cantonale Vaudoise for providing a total return of 40% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

Shareholders may want to check for free if Banque Cantonale Vaudoise insiders are buying or selling shares.

Important note: Banque Cantonale Vaudoise is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.