Shareholders Will Probably Hold Off On Increasing Basilea Pharmaceutica AG's (VTX:BSLN) CEO Compensation For The Time Being

Key Insights

• Basilea Pharmaceutica's Annual General Meeting to take place on 16th of April
• CEO David Veitch's total compensation includes salary of CHF624.2k
• Total compensation is 49% above industry average
• Over the past three years, Basilea Pharmaceutica's EPS grew by 69% and over the past three years, the total shareholder return was 6.8%

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Under the guidance of CEO David Veitch, Basilea Pharmaceutica AG (VTX:BSLN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of April. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Basilea Pharmaceutica

How Does Total Compensation For David Veitch Compare With Other Companies In The Industry?

Our data indicates that Basilea Pharmaceutica AG has a market capitalization of CHF484m, and total annual CEO compensation was reported as CHF1.8m for the year to December 2024. That's a modest increase of 4.4% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF624k.

On examining similar-sized companies in the Switzerland Biotechs industry with market capitalizations between CHF171m and CHF686m, we discovered that the median CEO total compensation of that group was CHF1.2m. This suggests that David Veitch is paid more than the median for the industry. What's more, David Veitch holds CHF375k worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	CHF624k	CHF611k	34%
Other	CHF1.2m	CHF1.1m	66%
Total Compensation	CHF1.8m	CHF1.7m	100%

Talking in terms of the industry, salary represented approximately 34% of total compensation out of all the companies we analyzed, while other remuneration made up 66% of the pie. Basilea Pharmaceutica is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Basilea Pharmaceutica AG's Growth Numbers

Over the past three years, Basilea Pharmaceutica AG has seen its earnings per share (EPS) grow by 69% per year. Its revenue is up 32% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Basilea Pharmaceutica AG Been A Good Investment?

Basilea Pharmaceutica AG has generated a total shareholder return of 6.8% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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. That's why we did some digging and identified 1 warning sign for Basilea Pharmaceutica that investors should think about before committing capital to this stock.

Switching gears from Basilea Pharmaceutica, 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.