Vetropack Holding AG's (VTX:VETN) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Vetropack Holding to hold its Annual General Meeting on 23rd of April
• CEO Johann Reiter's total compensation includes salary of CHF615.1k
• Total compensation is 39% above industry average
• Vetropack Holding's EPS declined by 40% over the past three years while total shareholder loss over the past three years was 29%

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The results at Vetropack Holding AG (VTX:VETN) have been quite disappointing recently and CEO Johann Reiter bears some responsibility for this. At the upcoming AGM on 23rd 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Vetropack Holding

Comparing Vetropack Holding AG's CEO Compensation With The Industry

At the time of writing, our data shows that Vetropack Holding AG has a market capitalization of CHF541m, and reported total annual CEO compensation of CHF1.1m for the year to December 2024. This means that the compensation hasn't changed much from last year. We note that the salary of CHF615.1k makes up a sizeable portion of the total compensation received by the CEO.

On examining similar-sized companies in the Switzerland Packaging industry with market capitalizations between CHF325m and CHF1.3b, we discovered that the median CEO total compensation of that group was CHF792k. This suggests that Johann Reiter is paid more than the median for the industry.

On an industry level, roughly 54% of total compensation represents salary and 46% is other remuneration. Our data reveals that Vetropack Holding allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Vetropack Holding AG's Growth

Over the last three years, Vetropack Holding AG has shrunk its earnings per share by 40% per year. It saw its revenue drop 6.4% 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. 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 Vetropack Holding AG Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Vetropack Holding AG investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for Vetropack Holding that you should be aware of before investing.

Important note: Vetropack Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.