It May Be Possible That BELIMO Holding AG's (VTX:BEAN) CEO Compensation Could Get Bumped Up

Key Insights

• BELIMO Holding's Annual General Meeting to take place on 24th of March
• Salary of CHF550.0k is part of CEO Lars van der Haegen's total remuneration
• The overall pay is 69% below the industry average
• Over the past three years, BELIMO Holding's EPS grew by 8.3% and over the past three years, the total shareholder return was 26%

Shareholders will probably not be disappointed by the robust results at BELIMO Holding AG (VTX:BEAN) recently and they will be keeping this in mind as they go into the AGM on 24th of March. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for BELIMO Holding

How Does Total Compensation For Lars van der Haegen Compare With Other Companies In The Industry?

At the time of writing, our data shows that BELIMO Holding AG has a market capitalization of CHF7.0b, and reported total annual CEO compensation of CHF1.4m for the year to December 2024. Notably, that's an increase of 8.4% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF550k.

On comparing similar companies from the Swiss Building industry with market caps ranging from CHF3.5b to CHF11b, we found that the median CEO total compensation was CHF4.5m. That is to say, Lars van der Haegen is paid under the industry median. Furthermore, Lars van der Haegen directly owns CHF2.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CHF550k	CHF550k	39%
Other	CHF854k	CHF745k	61%
Total Compensation	CHF1.4m	CHF1.3m	100%

On an industry level, roughly 40% of total compensation represents salary and 60% is other remuneration. Our data reveals that BELIMO Holding allocates salary more or less in line with the wider market. 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 BELIMO Holding AG's Growth Numbers

BELIMO Holding AG's earnings per share (EPS) grew 8.3% per year over the last three years. In the last year, its revenue is up 9.9%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has BELIMO Holding AG Been A Good Investment?

BELIMO Holding AG has generated a total shareholder return of 26% over three years, so most shareholders would 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...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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

Important note: BELIMO Holding 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.