We Take A Look At Why SKAN Group AG's (VTX:SKAN) CEO Has Earned Their Pay Packet

Key Insights

• SKAN Group will host its Annual General Meeting on 7th of May
• CEO GL Huber's total compensation includes salary of CHF562.5k
• Total compensation is similar to the industry average
• Over the past three years, SKAN Group's EPS grew by 39% and over the past three years, the total shareholder return was 135%

It would be hard to discount the role that CEO GL Huber has played in delivering the impressive results at SKAN Group AG (VTX:SKAN) recently. Coming up to the next AGM on 7th of May, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for SKAN Group

How Does Total Compensation For GL Huber Compare With Other Companies In The Industry?

According to our data, SKAN Group AG has a market capitalization of CHF1.8b, and paid its CEO total annual compensation worth CHF1.0m over the year to December 2023. That's a fairly small increase of 6.5% over the previous year. We note that the salary of CHF562.5k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Swiss Life Sciences industry with market capitalizations ranging between CHF919m and CHF2.9b had a median total CEO compensation of CHF870k. So it looks like SKAN Group compensates GL Huber in line with the median for the industry. What's more, GL Huber holds CHF31m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CHF563k	CHF485k	55%
Other	CHF451k	CHF467k	45%
Total Compensation	CHF1.0m	CHF952k	100%

On an industry level, roughly 35% of total compensation represents salary and 65% is other remuneration. According to our research, SKAN Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at SKAN Group AG's Growth Numbers

Over the past three years, SKAN Group AG has seen its earnings per share (EPS) grow by 39% per year. Its revenue is up 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 SKAN Group AG Been A Good Investment?

We think that the total shareholder return of 135%, over three years, would leave most SKAN Group AG shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

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 SKAN Group 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.