Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Jean-Pascal Bobst has been the CEO of Bobst Group SA (VTX:BOBNN) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jean-Pascal Bobst’s Compensation Compare With Similar Sized Companies?
Our data indicates that Bobst Group SA is worth CHF1.1b, and total annual CEO compensation is CHF1.6m. (This figure is for the year to December 2018). That’s less than last year. While we always look at total compensation first, we note that the salary component is less, at CHF682k. When we examined a selection of companies with market caps ranging from CHF395m to CHF1.6b, we found the median CEO total compensation was CHF979k.
It would therefore appear that Bobst Group SA pays Jean-Pascal Bobst more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Bobst Group, below.
Is Bobst Group SA Growing?
On average over the last three years, Bobst Group SA has grown earnings per share (EPS) by 13% each year (using a line of best fit). In the last year, its revenue is up 7.0%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bobst Group SA Been A Good Investment?
Most shareholders would probably be pleased with Bobst Group SA for providing a total return of 34% 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.
We examined the amount Bobst Group SA pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bobst Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.