Stock Analysis

It's Unlikely That Bellevue Group AG's (VTX:BBN) CEO Will See A Huge Pay Rise This Year

Source: Shutterstock

Key Insights

  • Bellevue Group's Annual General Meeting to take place on 21st of March
  • CEO André Rüegg's total compensation includes salary of CHF350.0k
  • Total compensation is 54% above industry average
  • Bellevue Group's total shareholder return over the past three years was 148% while its EPS grew by 9.7% over the past three years

Under the guidance of CEO André Rüegg, Bellevue Group AG (VTX:BBN) has performed reasonably well 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 21st of March. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Bellevue Group

Comparing Bellevue Group AG's CEO Compensation With The Industry

According to our data, Bellevue Group AG has a market capitalization of CHF486m, and paid its CEO total annual compensation worth CHF1.3m over the year to December 2022. We note that's a decrease of 43% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF350k.

On comparing similar companies from the Swiss Capital Markets industry with market caps ranging from CHF183m to CHF730m, we found that the median CEO total compensation was CHF865k. Accordingly, our analysis reveals that Bellevue Group AG pays André Rüegg north of the industry median. Furthermore, André Rüegg directly owns CHF11m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20222021Proportion (2022)
Salary CHF350k CHF350k 26%
Other CHF984k CHF2.0m 74%
Total CompensationCHF1.3m CHF2.3m100%

On an industry level, roughly 41% of total compensation represents salary and 59% is other remuneration. It's interesting to note that Bellevue Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

SWX:BBN CEO Compensation March 15th 2023

Bellevue Group AG's Growth

Bellevue Group AG's earnings per share (EPS) grew 9.7% per year over the last three years. It saw its revenue drop 32% over the last year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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?

Most shareholders would probably be pleased with Bellevue Group AG for providing a total return of 148% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 investors should think about before committing capital to this stock.

Important note: Bellevue 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.

Valuation is complex, but we're helping make it simple.

Find out whether Bellevue Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis