Key Things To Understand About Chocoladefabriken Lindt & Sprüngli's (VTX:LISN) CEO Pay Cheque

Dieter Weisskopf became the CEO of Chocoladefabriken Lindt & Sprüngli AG (VTX:LISN) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Chocoladefabriken Lindt & Sprüngli pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Chocoladefabriken Lindt & Sprüngli

Comparing Chocoladefabriken Lindt & Sprüngli AG's CEO Compensation With the industry

Our data indicates that Chocoladefabriken Lindt & Sprüngli AG has a market capitalization of CHF20b, and total annual CEO compensation was reported as CHF3.5m for the year to December 2019. That's a notable decrease of 8.4% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF1.3m.

In comparison with other companies in the industry with market capitalizations over CHF7.1b , the reported median total CEO compensation was CHF3.5m. So it looks like Chocoladefabriken Lindt & Sprüngli compensates Dieter Weisskopf in line with the median for the industry. Furthermore, Dieter Weisskopf directly owns CHF22m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. In Chocoladefabriken Lindt & Sprüngli's case, non-salary compensation represents a greater slice of total remuneration, 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.

A Look at Chocoladefabriken Lindt & Sprüngli AG's Growth Numbers

Chocoladefabriken Lindt & Sprüngli AG's earnings per share (EPS) grew 1.2% per year over the last three years. Its revenue is down 2.6% over the previous year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Chocoladefabriken Lindt & Sprüngli AG Been A Good Investment?

Chocoladefabriken Lindt & Sprüngli AG has generated a total shareholder return of 33% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Chocoladefabriken Lindt & Sprüngli pays its CEO in line with similar-sized companies belonging to the same industry. But the company has failed to produce substantial growth in either EPS or total shareholder return. So, although the CEO compensation seems reasonable, shareholders might want to see some further progress before they agree that Dieter should get a raise.

Whatever your view on compensation, you might want to check if insiders are buying or selling Chocoladefabriken Lindt & Sprüngli shares (free trial).

Switching gears from Chocoladefabriken Lindt & Sprüngli, 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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