Clariant AG's (VTX:CLN) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Clariant's Annual General Meeting to take place on 1st of April
• Salary of CHF1.20m is part of CEO Conrad Keijzer's total remuneration
• Total compensation is 141% above industry average
• Clariant's three-year loss to shareholders was 35% while its EPS was down 2.4% over the past three years

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Clariant AG (VTX:CLN) has not performed well recently and CEO Conrad Keijzer will probably need to up their game. At the upcoming AGM on 1st of April, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Clariant

Comparing Clariant AG's CEO Compensation With The Industry

At the time of writing, our data shows that Clariant AG has a market capitalization of CHF3.3b, and reported total annual CEO compensation of CHF5.2m for the year to December 2024. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF1.2m.

For comparison, other companies in the Swiss Chemicals industry with market capitalizations ranging between CHF1.8b and CHF5.6b had a median total CEO compensation of CHF2.2m. Hence, we can conclude that Conrad Keijzer is remunerated higher than the industry median.

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. Clariant 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.

Clariant AG's Growth

Clariant AG has reduced its earnings per share by 2.4% a year over the last three years. It saw its revenue drop 5.1% over the last year.

A lack of EPS improvement is not good to see. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Clariant AG Been A Good Investment?

The return of -35% over three years would not have pleased Clariant AG shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Clariant that investors should look into moving forward.

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.