Some Shareholders May Object To A Pay Rise For Bachem Holding AG's (VTX:BANB) CEO This Year

Key Insights

• Bachem Holding will host its Annual General Meeting on 30th of April
• CEO Thomas Meier's total compensation includes salary of CHF314.0k
• The overall pay is 62% below the industry average
• Over the past three years, Bachem Holding's EPS fell by 0.3% and over the past three years, the total loss to shareholders 42%

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Performance at Bachem Holding AG (VTX:BANB) has not been particularly rosy recently and shareholders will likely be holding CEO Thomas Meier and the board accountable for this. At the upcoming AGM on 30th of April, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for Bachem Holding

Comparing Bachem Holding AG's CEO Compensation With The Industry

According to our data, Bachem Holding AG has a market capitalization of CHF3.7b, and paid its CEO total annual compensation worth CHF762k over the year to December 2024. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF314k.

On comparing similar companies from the Swiss Life Sciences industry with market caps ranging from CHF1.7b to CHF5.3b, we found that the median CEO total compensation was CHF2.0m. This suggests that Thomas Meier is paid below the industry median. Furthermore, Thomas Meier directly owns CHF845k worth of shares in the company.

On an industry level, around 37% of total compensation represents salary and 63% is other remuneration. It's interesting to note that Bachem Holding pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Bachem Holding AG's Growth

Earnings per share at Bachem Holding AG are much the same as they were three years ago, albeit slightly lower. It achieved revenue growth of 4.8% over the last year.

The lack of EPS growth is certainly uninspiring. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Bachem Holding AG Been A Good Investment?

The return of -42% over three years would not have pleased Bachem Holding AG shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 1 warning sign for Bachem Holding that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.