This Is Why We Think BELIMO Holding AG's (VTX:BEAN) CEO Might Get A Pay Rise Approved By Shareholders

Key Insights

• BELIMO Holding will host its Annual General Meeting on 27th of March
• Salary of CHF520.0k is part of CEO Lars van der Haegen's total remuneration
• The total compensation is 54% less than the average for the industry
• Over the past three years, BELIMO Holding's EPS grew by 0.5% and over the past three years, the total shareholder return was 70%

The decent performance at BELIMO Holding AG (VTX:BEAN) recently will please most shareholders as they go into the AGM coming up on 27th of March. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for BELIMO Holding

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

Our data indicates that BELIMO Holding AG has a market capitalization of CHF5.5b, and total annual CEO compensation was reported as CHF1.3m for the year to December 2022. That's a slight decrease of 4.0% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF520k.

For comparison, other companies in the Swiss Building industry with market capitalizations ranging between CHF3.7b and CHF11b had a median total CEO compensation of CHF2.8m. In other words, BELIMO Holding pays its CEO lower than the industry median. Furthermore, Lars van der Haegen directly owns CHF1.1m worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	CHF520k	CHF500k	40%
Other	CHF766k	CHF840k	60%
Total Compensation	CHF1.3m	CHF1.3m	100%

Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. In BELIMO Holding's case, non-salary compensation represents a greater slice of total remuneration, 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.

A Look at BELIMO Holding AG's Growth Numbers

Over the last three years, BELIMO Holding AG has not seen its earnings per share change much, though there is a slight positive movement. In the last year, its revenue is up 11%.

This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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?

Boasting a total shareholder return of 70% over three years, BELIMO Holding AG has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for BELIMO Holding that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.