How Much Does Von Roll Holding's (VTX:ROL) CEO Make?

Christian Hennerkes has been the CEO of Von Roll Holding AG (VTX:ROL) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Von Roll Holding pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Von Roll Holding

Comparing Von Roll Holding AG's CEO Compensation With the industry

At the time of writing, our data shows that Von Roll Holding AG has a market capitalization of CHF268m, and reported total annual CEO compensation of CHF799k for the year to December 2019. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at CHF660.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from CHF178m to CHF711m, we found that the median CEO total compensation was CHF458k. This suggests that Christian Hennerkes is paid more than the median for the industry. Furthermore, Christian Hennerkes directly owns CHF2.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. Von Roll Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Von Roll Holding AG's Growth Numbers

Von Roll Holding AG has seen its earnings per share (EPS) increase by 43% a year over the past three years. In the last year, its revenue is down 16%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Von Roll Holding AG Been A Good Investment?

Given the total shareholder loss of 44% over three years, many shareholders in Von Roll 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...

As we noted earlier, Von Roll Holding pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, but it's disappointing to see negative shareholder returns over the same period. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

So you may want to check if insiders are buying Von Roll Holding shares with their own money (free access).

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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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