Shareholders Would Not Be Objecting To Burkhalter Holding AG's (VTX:BRKN) CEO Compensation And Here's Why

Key Insights

• Burkhalter Holding's Annual General Meeting to take place on 15th of May
• CEO Zeno Böhm's total compensation includes salary of CHF560.0k
• The overall pay is comparable to the industry average
• Burkhalter Holding's total shareholder return over the past three years was 94% while its EPS grew by 11% over the past three years

We've discovered 1 warning sign about Burkhalter Holding. View them for free.

It would be hard to discount the role that CEO Zeno Böhm has played in delivering the impressive results at Burkhalter Holding AG (VTX:BRKN) recently. Coming up to the next AGM on 15th of May, shareholders would be keeping this in mind. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Burkhalter Holding

How Does Total Compensation For Zeno Böhm Compare With Other Companies In The Industry?

According to our data, Burkhalter Holding AG has a market capitalization of CHF1.4b, and paid its CEO total annual compensation worth CHF1.8m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF560k.

For comparison, other companies in the Switzerland Construction industry with market capitalizations ranging between CHF831m and CHF2.7b had a median total CEO compensation of CHF2.0m. So it looks like Burkhalter Holding compensates Zeno Böhm in line with the median for the industry. Moreover, Zeno Böhm also holds CHF533k worth of Burkhalter Holding stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	CHF560k	CHF560k	31%
Other	CHF1.3m	CHF1.2m	69%
Total Compensation	CHF1.8m	CHF1.8m	100%

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Burkhalter Holding pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Burkhalter Holding AG's Growth Numbers

Burkhalter Holding AG has seen its earnings per share (EPS) increase by 11% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Burkhalter Holding AG Been A Good Investment?

Most shareholders would probably be pleased with Burkhalter Holding AG for providing a total return of 94% over three years. 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.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Burkhalter Holding that investors should be aware of in a dynamic business environment.

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.