Most Shareholders Will Probably Find That The CEO Compensation For St. Galler Kantonalbank AG (VTX:SGKN) Is Reasonable

Key Insights

• St. Galler Kantonalbank will host its Annual General Meeting on 30th of April
• CEO Christian Schmid's total compensation includes salary of CHF550.0k
• Total compensation is similar to the industry average
• St. Galler Kantonalbank's total shareholder return over the past three years was 17% while its EPS grew by 5.9% over the past three years

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Performance at St. Galler Kantonalbank AG (VTX:SGKN) has been reasonably good and CEO Christian Schmid has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of April. We present our case of why we think CEO compensation looks fair.

Check out our latest analysis for St. Galler Kantonalbank

Comparing St. Galler Kantonalbank AG's CEO Compensation With The Industry

According to our data, St. Galler Kantonalbank AG has a market capitalization of CHF2.9b, and paid its CEO total annual compensation worth CHF1.4m 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 CHF550k.

On comparing similar companies from the Swiss Banks industry with market caps ranging from CHF1.7b to CHF5.3b, we found that the median CEO total compensation was CHF1.2m. From this we gather that Christian Schmid is paid around the median for CEOs in the industry. What's more, Christian Schmid holds CHF2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CHF550k	CHF550k	40%
Other	CHF824k	CHF839k	60%
Total Compensation	CHF1.4m	CHF1.4m	100%

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. It's interesting to note that St. Galler Kantonalbank 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.

St. Galler Kantonalbank AG's Growth

St. Galler Kantonalbank AG has seen its earnings per share (EPS) increase by 5.9% a year over the past three years. Its revenue is down 2.6% over the previous year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 St. Galler Kantonalbank AG Been A Good Investment?

With a total shareholder return of 17% over three years, St. Galler Kantonalbank AG shareholders would, in general, be reasonably content. But they probably don't want to see the CEO 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. 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.

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

Important note: St. Galler Kantonalbank 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.