Shareholders May Be More Conservative With CPH Chemie + Papier Holding AG's (VTX:CPHN) CEO Compensation For Now

Key Insights

• CPH Chemie + Papier Holding's Annual General Meeting to take place on 20th of March
• Total pay for CEO Peter Schildknecht includes CHF456.0k salary
• Total compensation is 166% above industry average
• Over the past three years, CPH Chemie + Papier Holding's EPS grew by 19% and over the past three years, the total shareholder return was 43%

Under the guidance of CEO Peter Schildknecht, CPH Chemie + Papier Holding AG (VTX:CPHN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of March. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for CPH Chemie + Papier Holding

How Does Total Compensation For Peter Schildknecht Compare With Other Companies In The Industry?

According to our data, CPH Chemie + Papier Holding AG has a market capitalization of CHF510m, and paid its CEO total annual compensation worth CHF1.2m over the year to December 2023. That's slightly lower by 3.6% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF456k.

On comparing similar companies from the Switzerland Forestry industry with market caps ranging from CHF176m to CHF703m, we found that the median CEO total compensation was CHF441k. This suggests that Peter Schildknecht is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	CHF456k	CHF444k	39%
Other	CHF716k	CHF772k	61%
Total Compensation	CHF1.2m	CHF1.2m	100%

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. It's interesting to note that CPH Chemie + Papier Holding allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

CPH Chemie + Papier Holding AG's Growth

CPH Chemie + Papier Holding AG has seen its earnings per share (EPS) increase by 19% a year over the past three years. Its revenue is down 14% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CPH Chemie + Papier Holding AG Been A Good Investment?

We think that the total shareholder return of 43%, over three years, would leave most CPH Chemie + Papier Holding AG shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for CPH Chemie + Papier Holding (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.