It Looks Like Shareholders Would Probably Approve Burckhardt Compression Holding AG's (VTX:BCHN) CEO Compensation Package

Key Insights

• Burckhardt Compression Holding to hold its Annual General Meeting on 7th of July
• CEO Fabrice Billard's total compensation includes salary of CHF438.0k
• Total compensation is similar to the industry average
• Over the past three years, Burckhardt Compression Holding's EPS grew by 27% and over the past three years, the total shareholder return was 64%

It would be hard to discount the role that CEO Fabrice Billard has played in delivering the impressive results at Burckhardt Compression Holding AG (VTX:BCHN) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 7th of July. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Burckhardt Compression Holding

How Does Total Compensation For Fabrice Billard Compare With Other Companies In The Industry?

At the time of writing, our data shows that Burckhardt Compression Holding AG has a market capitalization of CHF2.0b, and reported total annual CEO compensation of CHF1.0m for the year to March 2024. We note that's an increase of 9.3% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF438k.

On comparing similar companies from the Swiss Machinery industry with market caps ranging from CHF898m to CHF2.9b, we found that the median CEO total compensation was CHF1.3m. So it looks like Burckhardt Compression Holding compensates Fabrice Billard in line with the median for the industry. Moreover, Fabrice Billard also holds CHF1.1m worth of Burckhardt Compression Holding stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	CHF438k	CHF400k	42%
Other	CHF607k	CHF556k	58%
Total Compensation	CHF1.0m	CHF956k	100%

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. Burckhardt Compression Holding is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Burckhardt Compression Holding AG's Growth

Burckhardt Compression Holding AG's earnings per share (EPS) grew 27% per year over the last three years. It achieved revenue growth of 18% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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?

Most shareholders would probably be pleased with Burckhardt Compression Holding AG for providing a total return of 64% over three years. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Burckhardt Compression Holding (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com