SIG Group AG's (VTX:SIGN) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• SIG Group will host its Annual General Meeting on 8th of April
• CEO Samuel Sigrist's total compensation includes salary of €744.7k
• The total compensation is 64% less than the average for the industry
• SIG Group's three-year loss to shareholders was 28% while its EPS was down 0.3% over the past three years

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Performance at SIG Group AG (VTX:SIGN) has not been particularly rosy recently and shareholders will likely be holding CEO Samuel Sigrist and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 8th of April. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for SIG Group

Comparing SIG Group AG's CEO Compensation With The Industry

At the time of writing, our data shows that SIG Group AG has a market capitalization of CHF6.3b, and reported total annual CEO compensation of €3.3m for the year to December 2024. Notably, that's an increase of 18% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €745k.

For comparison, other companies in the Switzerland Packaging industry with market capitalizations ranging between CHF3.5b and CHF11b had a median total CEO compensation of €9.2m. That is to say, Samuel Sigrist is paid under the industry median. What's more, Samuel Sigrist holds CHF3.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. In SIG Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

A Look at SIG Group AG's Growth Numbers

Earnings per share at SIG Group AG are much the same as they were three years ago, albeit slightly lower. Its revenue is up 3.0% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 SIG Group AG Been A Good Investment?

With a three year total loss of 28% for the shareholders, SIG Group AG would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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 3 warning signs for SIG Group that investors should look into moving forward.

Switching gears from SIG Group, 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.

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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.