Does Dätwyler Holding's (VTX:DAE) CEO Salary Compare Well With Industry Peers?

Dirk Lambrecht became the CEO of Dätwyler Holding AG (VTX:DAE) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Dätwyler Holding pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Dätwyler Holding

Comparing Dätwyler Holding AG's CEO Compensation With the industry

At the time of writing, our data shows that Dätwyler Holding AG has a market capitalization of CHF4.6b, and reported total annual CEO compensation of CHF2.4m for the year to December 2020. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF655k.

In comparison with other companies in the industry with market capitalizations ranging from CHF3.6b to CHF11b, the reported median CEO total compensation was CHF1.9m. So it looks like Dätwyler Holding compensates Dirk Lambrecht in line with the median for the industry.

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. In Dätwyler Holding's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Dätwyler Holding AG's Growth

Over the last three years, Dätwyler Holding AG has shrunk its earnings per share by 1.3% per year. In the last year, its revenue is down 3.9%.

A lack of EPS improvement is not good to see. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Dätwyler Holding AG Been A Good Investment?

We think that the total shareholder return of 44%, over three years, would leave most Dätwyler Holding AG shareholders smiling. 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...

As we noted earlier, Dätwyler Holding pays its CEO in line with similar-sized companies belonging to the same industry. Some investors may take issue with this, especially considering shrinking EPS for the past three years. But on the bright side, shareholder returns have moved northward during the same period. We do not think CEO compensation is a problem, but shareholders will probably want to see an increase in EPS before agreeing the business should pay any more.

Shareholders may want to check for free if Dätwyler Holding insiders are buying or selling shares.

Important note: Dätwyler 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. 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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