What Does Swissquote Group Holding's (VTX:SQN) CEO Pay Reveal?

This article will reflect on the compensation paid to Marc Bürki who has served as CEO of Swissquote Group Holding Ltd (VTX:SQN) since 1999. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Swissquote Group Holding.

See our latest analysis for Swissquote Group Holding

Comparing Swissquote Group Holding Ltd's CEO Compensation With the industry

At the time of writing, our data shows that Swissquote Group Holding Ltd has a market capitalization of CHF1.3b, and reported total annual CEO compensation of CHF919k for the year to December 2019. That's a modest increase of 4.9% on the prior year. We note that the salary portion, which stands at CHF520.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from CHF912m to CHF2.9b, the reported median CEO total compensation was CHF1.1m. So it looks like Swissquote Group Holding compensates Marc Bürki in line with the median for the industry. Furthermore, Marc Bürki directly owns CHF159m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. There isn't a significant difference between Swissquote Group Holding and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Swissquote Group Holding Ltd's Growth Numbers

Over the past three years, Swissquote Group Holding Ltd has seen its earnings per share (EPS) grow by 38% per year. In the last year, its revenue is up 31%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Swissquote Group Holding Ltd Been A Good Investment?

Most shareholders would probably be pleased with Swissquote Group Holding Ltd for providing a total return of 159% over three years. 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.

In Summary...

As we touched on above, Swissquote Group Holding Ltd is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Swissquote Group Holding.

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. 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.
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