Shareholders Will Probably Not Have Any Issues With Medartis Holding AG's (VTX:MED) CEO Compensation

Key Insights

• Medartis Holding's Annual General Meeting to take place on 17th of April
• CEO Christoph Bronnimann's total compensation includes salary of CHF500.0k
• The overall pay is comparable to the industry average
• Medartis Holding's EPS declined by 84% over the past three years while total shareholder return over the past three years was 18%

Performance at Medartis Holding AG (VTX:MED) has been reasonably good and CEO Christoph Bronnimann has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 17th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Medartis Holding

How Does Total Compensation For Christoph Bronnimann Compare With Other Companies In The Industry?

At the time of writing, our data shows that Medartis Holding AG has a market capitalization of CHF1.1b, and reported total annual CEO compensation of CHF1.9m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF500k.

On comparing similar companies from the Swiss Medical Equipment industry with market caps ranging from CHF913m to CHF2.9b, we found that the median CEO total compensation was CHF1.6m. This suggests that Medartis Holding remunerates its CEO largely in line with the industry average. What's more, Christoph Bronnimann holds CHF3.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CHF500k	CHF500k	27%
Other	CHF1.4m	CHF1.3m	73%
Total Compensation	CHF1.9m	CHF1.8m	100%

On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. Medartis Holding is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Medartis Holding AG's Growth

Over the last three years, Medartis Holding AG has shrunk its earnings per share by 84% per year. It achieved revenue growth of 16% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Medartis Holding AG Been A Good Investment?

Medartis Holding AG has served shareholders reasonably well, with a total return of 18% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Although the company has performed relatively well, we still think there are some areas that could be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Medartis Holding that you should be aware of before investing.

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.