Carlo Gavazzi Holding AG's (VTX:GAV) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Carlo Gavazzi Holding's Annual General Meeting to take place on 29th of July
• CEO Jean-Marc Theolier's total compensation includes salary of CHF542.0k
• The total compensation is 49% higher than the average for the industry
• Carlo Gavazzi Holding's three-year loss to shareholders was 27% while its EPS was down 43% over the past three years

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Carlo Gavazzi Holding AG (VTX:GAV) has not performed well recently and CEO Jean-Marc Theolier will probably need to up their game. At the upcoming AGM on 29th of July, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Carlo Gavazzi Holding

Comparing Carlo Gavazzi Holding AG's CEO Compensation With The Industry

According to our data, Carlo Gavazzi Holding AG has a market capitalization of CHF131m, and paid its CEO total annual compensation worth CHF789k over the year to March 2025. We note that's an increase of 10% above last year. Notably, the salary which is CHF542.0k, represents most of the total compensation being paid.

In comparison with other companies in the Swiss Electrical industry with market capitalizations ranging from CHF79m to CHF317m, the reported median CEO total compensation was CHF531k. Accordingly, our analysis reveals that Carlo Gavazzi Holding AG pays Jean-Marc Theolier north of the industry median.

Talking in terms of the industry, salary represented approximately 40% of total compensation out of all the companies we analyzed, while other remuneration made up 60% of the pie. It's interesting to note that Carlo Gavazzi Holding pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Carlo Gavazzi Holding AG's Growth

Carlo Gavazzi Holding AG has reduced its earnings per share by 43% a year over the last three years. It saw its revenue drop 24% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Carlo Gavazzi Holding AG Been A Good Investment?

Given the total shareholder loss of 27% over three years, many shareholders in Carlo Gavazzi Holding AG are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Carlo Gavazzi Holding that investors should be aware of in a dynamic business environment.

Important note: Carlo Gavazzi 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.