We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Liechtensteinische Landesbank Aktiengesellschaft's (VTX:LLBN) CEO For Now

Key Insights

• Liechtensteinische Landesbank to hold its Annual General Meeting on 19th of April
• Total pay for CEO Gabriel Brenna includes CHF870.0k salary
• The total compensation is 46% higher than the average for the industry
• Liechtensteinische Landesbank's EPS grew by 17% over the past three years while total shareholder return over the past three years was 51%

Under the guidance of CEO Gabriel Brenna, Liechtensteinische Landesbank Aktiengesellschaft (VTX:LLBN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19th of April. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Liechtensteinische Landesbank

Comparing Liechtensteinische Landesbank Aktiengesellschaft's CEO Compensation With The Industry

According to our data, Liechtensteinische Landesbank Aktiengesellschaft has a market capitalization of CHF2.3b, and paid its CEO total annual compensation worth CHF1.6m over the year to December 2023. That is, the compensation was roughly the same as last year. We note that the salary of CHF870.0k makes up a sizeable portion of the total compensation received by the CEO.

On examining similar-sized companies in the Swiss Banks industry with market capitalizations between CHF1.8b and CHF5.9b, we discovered that the median CEO total compensation of that group was CHF1.1m. Hence, we can conclude that Gabriel Brenna is remunerated higher than the industry median. Moreover, Gabriel Brenna also holds CHF2.1m worth of Liechtensteinische Landesbank stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	CHF870k	CHF870k	53%
Other	CHF757k	CHF756k	47%
Total Compensation	CHF1.6m	CHF1.6m	100%

Speaking on an industry level, nearly 46% of total compensation represents salary, while the remainder of 54% is other remuneration. According to our research, Liechtensteinische Landesbank has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Liechtensteinische Landesbank Aktiengesellschaft's Growth

Liechtensteinische Landesbank Aktiengesellschaft's earnings per share (EPS) grew 17% per year over the last three years. In the last year, its revenue is up 7.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Liechtensteinische Landesbank Aktiengesellschaft Been A Good Investment?

We think that the total shareholder return of 51%, over three years, would leave most Liechtensteinische Landesbank Aktiengesellschaft shareholders smiling. 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...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Liechtensteinische Landesbank that investors should look into moving forward.

Switching gears from Liechtensteinische Landesbank, 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.