What Does Bucher Industries' (VTX:BUCN) CEO Pay Reveal?

Jacques Sanche has been the CEO of Bucher Industries AG (VTX:BUCN) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Bucher Industries

How Does Total Compensation For Jacques Sanche Compare With Other Companies In The Industry?

Our data indicates that Bucher Industries AG has a market capitalization of CHF4.0b, and total annual CEO compensation was reported as CHF1.9m for the year to December 2019. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF800k.

In comparison with other companies in the industry with market capitalizations ranging from CHF1.8b to CHF5.7b, the reported median CEO total compensation was CHF1.9m. From this we gather that Jacques Sanche is paid around the median for CEOs in the industry. Moreover, Jacques Sanche also holds CHF1.4m worth of Bucher Industries stock directly under their own name.

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. Bucher Industries is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Bucher Industries AG's Growth Numbers

Bucher Industries AG's earnings per share (EPS) grew 8.7% per year over the last three years. In the last year, its revenue is down 11%.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Bucher Industries AG Been A Good Investment?

Bucher Industries AG has not done too badly by shareholders, with a total return of 4.6%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we noted earlier, Bucher Industries pays its CEO in line with similar-sized companies belonging to the same industry. But the company has failed to produce substantial growth in either EPS or total shareholder return. Considering the steady performance, it's tough to call out CEO compensation as too high, but shareholders might want to see more robust growth metrics before agreeing to a future raise.

Shareholders may want to check for free if Bucher Industries insiders are buying or selling shares.

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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. 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.
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