It's Probably Less Likely That Luzerner Kantonalbank AG's (VTX:LUKN) CEO Will See A Huge Pay Rise This Year

Key Insights

• Luzerner Kantonalbank to hold its Annual General Meeting on 14th of April
• Salary of CHF600.0k is part of CEO Daniel Salzmann's total remuneration
• The total compensation is similar to the average for the industry
• Luzerner Kantonalbank's three-year loss to shareholders was 15% while its EPS grew by 3.7% over the past three years

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The underwhelming share price performance of Luzerner Kantonalbank AG (VTX:LUKN) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 14th of April could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Luzerner Kantonalbank

Comparing Luzerner Kantonalbank AG's CEO Compensation With The Industry

Our data indicates that Luzerner Kantonalbank AG has a market capitalization of CHF3.3b, and total annual CEO compensation was reported as CHF1.3m for the year to December 2024. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF600k.

On comparing similar companies from the Swiss Banks industry with market caps ranging from CHF1.7b to CHF5.5b, we found that the median CEO total compensation was CHF1.2m. This suggests that Luzerner Kantonalbank remunerates its CEO largely in line with the industry average.

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. Although there is a difference in how total compensation is set, Luzerner Kantonalbank more or less reflects the market in terms of setting the salary. 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 Luzerner Kantonalbank AG's Growth Numbers

Luzerner Kantonalbank AG has seen its earnings per share (EPS) increase by 3.7% a year over the past three years. It achieved revenue growth of 5.8% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Luzerner Kantonalbank AG Been A Good Investment?

Given the total shareholder loss of 15% over three years, many shareholders in Luzerner Kantonalbank AG are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Luzerner Kantonalbank (free visualization of insider trades).

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. 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.