We Discuss Why The CEO Of Swissquote Group Holding Ltd (VTX:SQN) Is Due For A Pay Rise

Key Insights

• Swissquote Group Holding's Annual General Meeting to take place on 8th of May
• CEO Marc Burki's total compensation includes salary of CHF550.0k
• The overall pay is 35% below the industry average
• Over the past three years, Swissquote Group Holding's EPS grew by 34% and over the past three years, the total shareholder return was 88%

The solid performance at Swissquote Group Holding Ltd (VTX:SQN) has been impressive and shareholders will probably be pleased to know that CEO Marc Burki has delivered. This would be kept in mind at the upcoming AGM on 8th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Swissquote Group Holding

How Does Total Compensation For Marc Burki Compare With Other Companies In The Industry?

According to our data, Swissquote Group Holding Ltd has a market capitalization of CHF3.7b, and paid its CEO total annual compensation worth CHF1.1m over the year to December 2023. That's a notable increase of 27% on last year. In particular, the salary of CHF550.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Swiss Capital Markets industry with market capitalizations ranging between CHF1.8b and CHF5.9b had a median total CEO compensation of CHF1.6m. This suggests that Marc Burki is paid below the industry median.

Component	2023	2022	Proportion (2023)
Salary	CHF550k	CHF550k	52%
Other	CHF507k	CHF284k	48%
Total Compensation	CHF1.1m	CHF834k	100%

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. According to our research, Swissquote Group Holding has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Swissquote Group Holding Ltd's Growth

Swissquote Group Holding Ltd has seen its earnings per share (EPS) increase by 34% a year over the past three years. Its revenue is up 29% over the last year.

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 Swissquote Group Holding Ltd Been A Good Investment?

Boasting a total shareholder return of 88% over three years, Swissquote Group Holding Ltd has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Swissquote Group Holding (free visualization of insider trades).

Important note: Swissquote Group Holding 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.

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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.