We Discuss Whether Bachem Holding AG's (VTX:BANB) CEO Is Due For A Pay Rise

Key Insights

• Bachem Holding will host its Annual General Meeting on 19th of April
• Salary of CHF298.0k is part of CEO Thomas Meier's total remuneration
• The total compensation is 78% less than the average for the industry
• Bachem Holding's total shareholder return over the past three years was 127% while its EPS grew by 20% over the past three years

Shareholders will be pleased by the impressive results for Bachem Holding AG (VTX:BANB) recently and CEO Thomas Meier has played a key role. At the upcoming AGM on 19th of April, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Bachem Holding

Comparing Bachem Holding AG's CEO Compensation With The Industry

Our data indicates that Bachem Holding AG has a market capitalization of CHF7.0b, and total annual CEO compensation was reported as CHF604k for the year to December 2022. That's slightly lower by 3.7% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF298k.

In comparison with other companies in the Swiss Life Sciences industry with market capitalizations ranging from CHF3.6b to CHF11b, the reported median CEO total compensation was CHF2.8m. In other words, Bachem Holding pays its CEO lower than the industry median. Furthermore, Thomas Meier directly owns CHF1.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	CHF298k	CHF278k	49%
Other	CHF306k	CHF349k	51%
Total Compensation	CHF604k	CHF627k	100%

Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. Bachem Holding is paying a higher share of its remuneration through a salary in comparison to the overall 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

Bachem Holding AG has seen its earnings per share (EPS) increase by 20% a year over the past three years. Its revenue is up 5.7% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Bachem Holding AG Been A Good Investment?

Most shareholders would probably be pleased with Bachem Holding AG for providing a total return of 127% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Bachem Holding that investors should look into moving forward.

Important note: Bachem 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.