Here's Why Shareholders May Want To Be Cautious With Increasing Phoenix Mecano AG's (VTX:PMN) CEO Pay Packet

Key Insights

• Phoenix Mecano will host its Annual General Meeting on 22nd of May
• CEO Rochus Kobler's total compensation includes salary of €889.4k
• The total compensation is 61% higher than the average for the industry
• Phoenix Mecano's total shareholder return over the past three years was 45% while its EPS grew by 4.1% over the past three years

We've discovered 1 warning sign about Phoenix Mecano. View them for free.

Performance at Phoenix Mecano AG (VTX:PMN) has been reasonably good and CEO Rochus Kobler has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of May. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Phoenix Mecano

How Does Total Compensation For Rochus Kobler Compare With Other Companies In The Industry?

Our data indicates that Phoenix Mecano AG has a market capitalization of CHF434m, and total annual CEO compensation was reported as €1.6m for the year to December 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is €889.4k, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Swiss Electrical industry with market capitalizations ranging from CHF167m to CHF668m, the reported median CEO total compensation was €1.0m. This suggests that Rochus Kobler is paid more than the median for the industry. Furthermore, Rochus Kobler directly owns CHF742k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	€889k	€747k	54%
Other	€760k	€881k	46%
Total Compensation	€1.6m	€1.6m	100%

On an industry level, around 40% of total compensation represents salary and 60% is other remuneration. According to our research, Phoenix Mecano has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Phoenix Mecano AG's Growth Numbers

Over the past three years, Phoenix Mecano AG has seen its earnings per share (EPS) grow by 4.1% per year. Revenue was pretty flat on last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Phoenix Mecano AG Been A Good Investment?

Boasting a total shareholder return of 45% over three years, Phoenix Mecano AG has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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 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 1 warning sign for Phoenix Mecano that investors should be aware of in a dynamic business environment.

Switching gears from Phoenix Mecano, 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.