Here's Why It's Unlikely That Komax Holding AG's (VTX:KOMN) CEO Will See A Pay Rise This Year

Key Insights

• Komax Holding will host its Annual General Meeting on 16th of April
• CEO Matijas Meyer's total compensation includes salary of CHF545.0k
• Total compensation is similar to the industry average
• Komax Holding's three-year loss to shareholders was 64% while its EPS was down 46% over the past three years

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Komax Holding AG (VTX:KOMN) has not performed well recently and CEO Matijas Meyer will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 16th of April. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Komax Holding

Comparing Komax Holding AG's CEO Compensation With The Industry

According to our data, Komax Holding AG has a market capitalization of CHF448m, and paid its CEO total annual compensation worth CHF1.0m over the year to December 2024. We note that's a small decrease of 4.0% on last year. In particular, the salary of CHF545.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Swiss Machinery industry with market capitalizations between CHF171m and CHF686m, we discovered that the median CEO total compensation of that group was CHF1.0m. So it looks like Komax Holding compensates Matijas Meyer in line with the median for the industry. Moreover, Matijas Meyer also holds CHF568k worth of Komax Holding stock directly under their own name.

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. According to our research, Komax Holding has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Komax Holding AG's Growth

Over the last three years, Komax Holding AG has shrunk its earnings per share by 46% per year. Its revenue is down 16% over the previous 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has Komax Holding AG Been A Good Investment?

The return of -64% over three years would not have pleased Komax Holding AG shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Komax 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.