Increases to CEO Compensation Might Be Put On Hold For Now at Bellevue Group AG (VTX:BBN)

By
Simply Wall St
Published
March 16, 2022
SWX:BBN
Source: Shutterstock

CEO André Rüegg has done a decent job of delivering relatively good performance at Bellevue Group AG (VTX:BBN) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22 March 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Bellevue Group

How Does Total Compensation For André Rüegg Compare With Other Companies In The Industry?

Our data indicates that Bellevue Group AG has a market capitalization of CHF550m, and total annual CEO compensation was reported as CHF2.3m for the year to December 2021. That's a notable increase of 25% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF350k.

For comparison, other companies in the same industry with market capitalizations ranging between CHF188m and CHF753m had a median total CEO compensation of CHF975k. Accordingly, our analysis reveals that Bellevue Group AG pays André Rüegg north of the industry median. Moreover, André Rüegg also holds CHF13m worth of Bellevue Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary CHF350k CHF314k 15%
Other CHF2.0m CHF1.6m 85%
Total CompensationCHF2.3m CHF1.9m100%

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. It's interesting to note that Bellevue Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
SWX:BBN CEO Compensation March 16th 2022

A Look at Bellevue Group AG's Growth Numbers

Bellevue Group AG's earnings per share (EPS) grew 19% per year over the last three years. In the last year, its revenue is up 27%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bellevue Group AG Been A Good Investment?

We think that the total shareholder return of 163%, over three years, would leave most Bellevue 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 Bellevue Group that you should be aware of before investing.

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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