Increases to CEO Compensation Might Be Put On Hold For Now at CPH Chemie + Papier Holding AG (VTX:CPHN)

Key Insights

• CPH Chemie + Papier Holding to hold its Annual General Meeting on 14th of March
• Salary of CHF520.0k is part of CEO Peter Schildknecht's total remuneration
• Total compensation is 81% above industry average
• Over the past three years, CPH Chemie + Papier Holding's EPS grew by 28% and over the past three years, the total shareholder return was 32%

CEO Peter Schildknecht has done a decent job of delivering relatively good performance at CPH Chemie + Papier Holding AG (VTX:CPHN) 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 14th of March. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for CPH Chemie + Papier Holding

Comparing CPH Chemie + Papier Holding AG's CEO Compensation With The Industry

According to our data, CPH Chemie + Papier Holding AG has a market capitalization of CHF565m, and paid its CEO total annual compensation worth CHF1.2m over the year to December 2022. That's a fairly small increase of 3.3% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF520k.

In comparison with other companies in the Switzerland Forestry industry with market capitalizations ranging from CHF372m to CHF1.5b, the reported median CEO total compensation was CHF647k. Hence, we can conclude that Peter Schildknecht is remunerated higher than the industry median. What's more, Peter Schildknecht holds CHF178k worth of shares in the company in their own name.

Component	2022	2021	Proportion (2022)
Salary	CHF520k	CHF520k	44%
Other	CHF653k	CHF616k	56%
Total Compensation	CHF1.2m	CHF1.1m	100%

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. CPH Chemie + Papier Holding 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.

CPH Chemie + Papier Holding AG's Growth

CPH Chemie + Papier Holding AG has seen its earnings per share (EPS) increase by 28% a year over the past three years. It achieved revenue growth of 46% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 CPH Chemie + Papier Holding AG Been A Good Investment?

CPH Chemie + Papier Holding AG has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for CPH Chemie + Papier Holding (1 is a bit unpleasant!) that you should be aware of before investing here.

Switching gears from CPH Chemie + Papier Holding, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.