How Much Does Burckhardt Compression Holding's (VTX:BCHN) CEO Make?

This article will reflect on the compensation paid to Marcel Pawlicek who has served as CEO of Burckhardt Compression Holding AG (VTX:BCHN) since 2011. This analysis will also assess whether Burckhardt Compression Holding pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Burckhardt Compression Holding

Comparing Burckhardt Compression Holding AG's CEO Compensation With the industry

Our data indicates that Burckhardt Compression Holding AG has a market capitalization of CHF981m, and total annual CEO compensation was reported as CHF792k for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is CHF431.0k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between CHF355m and CHF1.4b, we discovered that the median CEO total compensation of that group was CHF1.1m. So it looks like Burckhardt Compression Holding compensates Marcel Pawlicek in line with the median for the industry. What's more, Marcel Pawlicek holds CHF12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 46% of total compensation represents salary and 54% is other remuneration. Burckhardt Compression Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

Burckhardt Compression Holding AG's Growth

Burckhardt Compression Holding AG's earnings per share (EPS) grew 11% per year over the last three years. In the last year, its revenue is up 5.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Burckhardt Compression Holding AG Been A Good Investment?

Given the total shareholder loss of 1.7% over three years, many shareholders in Burckhardt Compression Holding AG are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Marcel is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

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 2 warning signs for Burckhardt Compression Holding that investors should look into moving forward.

Switching gears from Burckhardt Compression Holding, 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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