We Discuss Why Zehnder Group AG's (VTX:ZEHN) CEO Compensation May Be Closely Reviewed

Key Insights

• Zehnder Group's Annual General Meeting to take place on 3rd of April
• Total pay for CEO Matthias Huenerwadel includes €575.1k salary
• The total compensation is similar to the average for the industry
• Zehnder Group's three-year loss to shareholders was 30% while its EPS was down 69% over the past three years

Zehnder Group AG (VTX:ZEHN) has not performed well recently and CEO Matthias Huenerwadel will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 3rd of April. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Zehnder Group

Comparing Zehnder Group AG's CEO Compensation With The Industry

Our data indicates that Zehnder Group AG has a market capitalization of CHF579m, and total annual CEO compensation was reported as €1.4m for the year to December 2024. That's a notable increase of 13% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €575k.

In comparison with other companies in the Swiss Building industry with market capitalizations ranging from CHF353m to CHF1.4b, the reported median CEO total compensation was €1.2m. This suggests that Zehnder Group remunerates its CEO largely in line with the industry average. What's more, Matthias Huenerwadel holds CHF2.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 40% of total compensation out of all the companies we analyzed, while other remuneration made up 60% of the pie. Zehnder Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Zehnder Group AG's Growth Numbers

Zehnder Group AG has reduced its earnings per share by 69% a year over the last three years. In the last year, its revenue is down 7.4%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Zehnder Group AG Been A Good Investment?

The return of -30% over three years would not have pleased Zehnder Group AG shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for Zehnder Group that investors should look into moving forward.

Switching gears from Zehnder Group, 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.