There Could Be A Chance SFS Group AG's (VTX:SFSN) CEO Will Have Their Compensation Increased

Key Insights

• SFS Group will host its Annual General Meeting on 26th of April
• Salary of CHF639.0k is part of CEO Jens Breu's total remuneration
• The total compensation is 34% less than the average for the industry
• Over the past three years, SFS Group's EPS grew by 7.8% and over the past three years, the total shareholder return was 71%

The decent performance at SFS Group AG (VTX:SFSN) recently will please most shareholders as they go into the AGM coming up on 26th of April. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for SFS Group

How Does Total Compensation For Jens Breu Compare With Other Companies In The Industry?

Our data indicates that SFS Group AG has a market capitalization of CHF4.7b, and total annual CEO compensation was reported as CHF1.5m for the year to December 2022. We note that's a decrease of 9.7% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF639k.

In comparison with other companies in the Swiss Machinery industry with market capitalizations ranging from CHF3.6b to CHF11b, the reported median CEO total compensation was CHF2.2m. That is to say, Jens Breu is paid under the industry median. Furthermore, Jens Breu directly owns CHF3.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	CHF639k	CHF635k	44%
Other	CHF828k	CHF990k	56%
Total Compensation	CHF1.5m	CHF1.6m	100%

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Although there is a difference in how total compensation is set, SFS Group more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at SFS Group AG's Growth Numbers

SFS Group AG's earnings per share (EPS) grew 7.8% per year over the last three years. It achieved revenue growth of 45% over the last year.

It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has SFS Group AG Been A Good Investment?

We think that the total shareholder return of 71%, over three years, would leave most SFS Group AG shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for SFS Group that investors should think about before committing capital to this stock.

Important note: SFS Group 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.

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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.