This Is Why Shareholders Will Hold Back On A Pay Rise For Chocoladefabriken Lindt & Sprüngli AG's (VTX:LISN) CEO This Year

Key Insights

• Chocoladefabriken Lindt & Sprüngli will host its Annual General Meeting on 16th of April
• CEO Adalbert Lechner's total compensation includes salary of CHF1.35m
• The total compensation is similar to the average for the industry
• Chocoladefabriken Lindt & Sprüngli's total shareholder return over the past three years was 2.5% while its EPS grew by 13% over the past three years

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CEO Adalbert Lechner has done a decent job of delivering relatively good performance at Chocoladefabriken Lindt & Sprüngli AG (VTX:LISN) 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 16th of April. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Chocoladefabriken Lindt & Sprüngli

Comparing Chocoladefabriken Lindt & Sprüngli AG's CEO Compensation With The Industry

According to our data, Chocoladefabriken Lindt & Sprüngli AG has a market capitalization of CHF26b, and paid its CEO total annual compensation worth CHF4.7m over the year to December 2024. That's a notable increase of 13% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF1.4m.

For comparison, other companies in the Swiss Food industry with market capitalizations above CHF6.9b, reported a median total CEO compensation of CHF4.7m. This suggests that Chocoladefabriken Lindt & Sprüngli remunerates its CEO largely in line with the industry average. Furthermore, Adalbert Lechner directly owns CHF790k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	CHF1.4m	CHF1.2m	29%
Other	CHF3.4m	CHF3.0m	71%
Total Compensation	CHF4.7m	CHF4.2m	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% 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 has seen its earnings per share (EPS) increase by 13% a year over the past three years. It achieved revenue growth of 6.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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?

With a total shareholder return of 2.5% over three years, Chocoladefabriken Lindt & Sprüngli AG has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

Shareholders may want to check for free if Chocoladefabriken Lindt & Sprüngli insiders are buying or selling shares.

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. 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.