Here's Why We Think Thurgauer Kantonalbank's (VTX:TKBP) CEO Compensation Looks Fair for the time being

Key Insights

• Thurgauer Kantonalbank will host its Annual General Meeting on 22nd of May
• Total pay for CEO Thomas Koller includes CHF539.0k salary
• The overall pay is comparable to the industry average
• Thurgauer Kantonalbank's EPS grew by 2.8% over the past three years while total shareholder return over the past three years was 46%

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Performance at Thurgauer Kantonalbank (VTX:TKBP) has been reasonably good and CEO Thomas Koller has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 22nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Thurgauer Kantonalbank

How Does Total Compensation For Thomas Koller Compare With Other Companies In The Industry?

According to our data, Thurgauer Kantonalbank has a market capitalization of CHF3.0b, and paid its CEO total annual compensation worth CHF990k over the year to December 2024. That's mostly flat as compared to the prior year's compensation. In particular, the salary of CHF539.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Swiss Banks industry with market capitalizations between CHF1.7b and CHF5.3b, we discovered that the median CEO total compensation of that group was CHF1.2m. This suggests that Thurgauer Kantonalbank remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 46% of total compensation represents salary, while the remainder of 54% is other remuneration. Thurgauer Kantonalbank pays out 54% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Thurgauer Kantonalbank's Growth Numbers

Over the past three years, Thurgauer Kantonalbank has seen its earnings per share (EPS) grow by 2.8% per year. Its revenue is down 1.2% 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. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Thurgauer Kantonalbank Been A Good Investment?

We think that the total shareholder return of 46%, over three years, would leave most Thurgauer Kantonalbank shareholders smiling. 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.

In Summary...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

So you may want to check if insiders are buying Thurgauer Kantonalbank shares with their own money (free access).

Important note: Thurgauer 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.