Here's Why Galenica AG's (VTX:GALE) CEO May Have Their Pay Bumped Up

Key Insights

• Galenica to hold its Annual General Meeting on 10th of April
• CEO Marc Werner's total compensation includes salary of CHF500.0k
• The total compensation is 38% less than the average for the industry
• Over the past three years, Galenica's EPS grew by 2.8% and over the past three years, the total shareholder return was 21%

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Shareholders will be pleased by the robust performance of Galenica AG (VTX:GALE) recently and this will be kept in mind in the upcoming AGM on 10th of April. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Galenica

Comparing Galenica AG's CEO Compensation With The Industry

At the time of writing, our data shows that Galenica AG has a market capitalization of CHF4.0b, and reported total annual CEO compensation of CHF1.3m for the year to December 2024. We note that's an increase of 22% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF500k.

In comparison with other companies in the Switzerland Healthcare industry with market capitalizations ranging from CHF1.7b to CHF5.5b, the reported median CEO total compensation was CHF2.1m. That is to say, Marc Werner is paid under the industry median. Moreover, Marc Werner also holds CHF983k worth of Galenica stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	CHF500k	CHF500k	39%
Other	CHF786k	CHF550k	61%
Total Compensation	CHF1.3m	CHF1.1m	100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. Galenica sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Galenica AG's Growth Numbers

Over the past three years, Galenica AG has seen its earnings per share (EPS) grow by 2.8% per year. Its revenue is up 4.6% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has Galenica AG Been A Good Investment?

Galenica AG has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.