Implenia AG's (VTX:IMPN) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Implenia will host its Annual General Meeting on 26th of March
• Total pay for CEO André Wyss includes CHF1.20m salary
• The total compensation is 136% higher than the average for the industry
• Implenia's total shareholder return over the past three years was 20% while its EPS grew by 93% over the past three years

Under the guidance of CEO André Wyss, Implenia AG (VTX:IMPN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 26th of March, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Implenia

How Does Total Compensation For André Wyss Compare With Other Companies In The Industry?

According to our data, Implenia AG has a market capitalization of CHF584m, and paid its CEO total annual compensation worth CHF3.6m over the year to December 2023. We note that's a decrease of 10% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF1.2m.

On examining similar-sized companies in the Switzerland Construction industry with market capitalizations between CHF355m and CHF1.4b, we discovered that the median CEO total compensation of that group was CHF1.5m. This suggests that André Wyss is paid more than the median for the industry. Moreover, André Wyss also holds CHF4.0m worth of Implenia stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	CHF1.2m	CHF1.2m	34%
Other	CHF2.4m	CHF2.8m	66%
Total Compensation	CHF3.6m	CHF4.0m	100%

Talking in terms of the industry, salary represented approximately 49% of total compensation out of all the companies we analyzed, while other remuneration made up 51% of the pie. Implenia sets aside a smaller share of compensation for salary, in comparison to the overall 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 Implenia AG's Growth Numbers

Over the past three years, Implenia AG has seen its earnings per share (EPS) grow by 93% per year. Its revenue is up 1.6% over the last year.

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. 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 Implenia AG Been A Good Investment?

With a total shareholder return of 20% over three years, Implenia AG shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Implenia (2 are concerning!) that you should be aware of before investing here.

Switching gears from Implenia, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.