Shareholders Will Probably Hold Off On Increasing Tornos Holding AG's (VTX:TOHN) CEO Compensation For The Time Being

Key Insights

• Tornos Holding's Annual General Meeting to take place on 5th of April
• Salary of CHF556.0k is part of CEO Michael Hauser's total remuneration
• The overall pay is 399% above the industry average
• Tornos Holding's EPS grew by 33% over the past three years while total shareholder return over the past three years was 71%

Performance at Tornos Holding AG (VTX:TOHN) has been reasonably good and CEO Michael Hauser 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 5th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Tornos Holding

How Does Total Compensation For Michael Hauser Compare With Other Companies In The Industry?

At the time of writing, our data shows that Tornos Holding AG has a market capitalization of CHF122m, and reported total annual CEO compensation of CHF1.0m for the year to December 2022. That's slightly lower by 6.4% over the previous year. Notably, the salary which is CHF556.0k, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Swiss Machinery industry with market capitalizations under CHF184m, the reported median total CEO compensation was CHF204k. Hence, we can conclude that Michael Hauser is remunerated higher than the industry median. What's more, Michael Hauser holds CHF740k worth of shares in the company in their own name.

Component	2022	2021	Proportion (2022)
Salary	CHF556k	CHF556k	55%
Other	CHF461k	CHF531k	45%
Total Compensation	CHF1.0m	CHF1.1m	100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. According to our research, Tornos 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.

A Look at Tornos Holding AG's Growth Numbers

Over the past three years, Tornos Holding AG has seen its earnings per share (EPS) grow by 33% per year. In the last year, its revenue is up 5.8%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Tornos Holding AG Been A Good Investment?

Boasting a total shareholder return of 71% over three years, Tornos Holding AG has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which makes us a bit uncomfortable) in Tornos Holding we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.