Here's Why Shareholders Will Not Be Complaining About Schweiter Technologies AG's (VTX:SWTQ) CEO Pay Packet

We have been pretty impressed with the performance at Schweiter Technologies AG (VTX:SWTQ) recently and CEO Heinz Baumgartner deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 01 April 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Schweiter Technologies

Comparing Schweiter Technologies AG's CEO Compensation With the industry

Our data indicates that Schweiter Technologies AG has a market capitalization of CHF2.3b, and total annual CEO compensation was reported as CHF2.4m for the year to December 2020. That's a notable increase of 60% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF800k.

In comparison with other companies in the industry with market capitalizations ranging from CHF1.9b to CHF6.0b, the reported median CEO total compensation was CHF2.5m. From this we gather that Heinz Baumgartner is paid around the median for CEOs in the industry. Moreover, Heinz Baumgartner also holds CHF609k worth of Schweiter Technologies stock directly under their own name.

Component	2020	2019	Proportion (2020)
Salary	CHF800k	CHF800k	33%
Other	CHF1.6m	CHF724k	67%
Total Compensation	CHF2.4m	CHF1.5m	100%

On an industry level, around 38% of total compensation represents salary and 62% is other remuneration. In Schweiter Technologies' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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 Schweiter Technologies AG's Growth Numbers

Over the past three years, Schweiter Technologies AG has seen its earnings per share (EPS) grow by 10% per year. It saw its revenue drop 1.6% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Schweiter Technologies AG Been A Good Investment?

We think that the total shareholder return of 62%, over three years, would leave most Schweiter Technologies 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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. That's why we did some digging and identified 1 warning sign for Schweiter Technologies that you should be aware of before investing.

Switching gears from Schweiter Technologies, 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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