It Looks Like Gurit Holding AG's (VTX:GURN) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Gurit Holding's Annual General Meeting to take place on 18th of April
• CEO Mitja Schulz's total compensation includes salary of CHF500.0k
• Total compensation is 92% above industry average
• Gurit Holding's EPS declined by 32% over the past three years while total shareholder loss over the past three years was 73%

Gurit Holding AG (VTX:GURN) has not performed well recently and CEO Mitja Schulz will probably need to up their game. At the upcoming AGM on 18th 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 Gurit Holding

Comparing Gurit Holding AG's CEO Compensation With The Industry

At the time of writing, our data shows that Gurit Holding AG has a market capitalization of CHF294m, and reported total annual CEO compensation of CHF1.1m for the year to December 2023. Notably, that's an increase of 67% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF500k.

On comparing similar companies from the Swiss Chemicals industry with market caps ranging from CHF182m to CHF728m, we found that the median CEO total compensation was CHF596k. Hence, we can conclude that Mitja Schulz is remunerated higher than the industry median. Furthermore, Mitja Schulz directly owns CHF151k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	CHF500k	CHF500k	44%
Other	CHF646k	CHF186k	56%
Total Compensation	CHF1.1m	CHF686k	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Gurit Holding pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Gurit Holding AG's Growth

Over the last three years, Gurit Holding AG has shrunk its earnings per share by 32% per year. It saw its revenue drop 7.9% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Gurit Holding AG Been A Good Investment?

With a total shareholder return of -73% over three years, Gurit Holding AG shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Gurit Holding that investors should be aware of in a dynamic business environment.

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.