Here's Why Shareholders May Want To Be Cautious With Increasing Straumann Holding AG's (VTX:STMN) CEO Pay Packet

Key Insights

• Straumann Holding's Annual General Meeting to take place on 10th of April
• Salary of CHF1.09m is part of CEO Guillaume Daniellot's total remuneration
• The overall pay is comparable to the industry average
• Straumann Holding's EPS grew by 4.8% over the past three years while total shareholder loss over the past three years was 25%

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The underwhelming share price performance of Straumann Holding AG (VTX:STMN) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 10th of April could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Straumann Holding

Comparing Straumann Holding AG's CEO Compensation With The Industry

According to our data, Straumann Holding AG has a market capitalization of CHF16b, and paid its CEO total annual compensation worth CHF4.7m over the year to December 2024. That's a notable increase of 18% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF1.1m.

For comparison, other companies in the Swiss Medical Equipment industry with market capitalizations above CHF6.9b, reported a median total CEO compensation of CHF5.3m. So it looks like Straumann Holding compensates Guillaume Daniellot in line with the median for the industry. What's more, Guillaume Daniellot holds CHF3.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. Straumann Holding is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 Straumann Holding AG's Growth Numbers

Straumann Holding AG's earnings per share (EPS) grew 4.8% per year over the last three years. It achieved revenue growth of 10.0% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Straumann Holding AG Been A Good Investment?

Given the total shareholder loss of 25% over three years, many shareholders in Straumann Holding AG are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

Shareholders may want to check for free if Straumann Holding insiders are buying or selling shares.

Important note: Straumann Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.