Here's Why Shareholders Should Examine Tecan Group AG's (VTX:TECN) CEO Compensation Package More Closely

Key Insights

• Tecan Group will host its Annual General Meeting on 10th of April
• Total pay for CEO Achim von Leoprechting includes CHF675.0k salary
• The overall pay is 191% above the industry average
• Over the past three years, Tecan Group's EPS fell by 19% and over the past three years, the total loss to shareholders 58%

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Shareholders will probably not be too impressed with the underwhelming results at Tecan Group AG (VTX:TECN) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 10th of April. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Tecan Group

How Does Total Compensation For Achim von Leoprechting Compare With Other Companies In The Industry?

Our data indicates that Tecan Group AG has a market capitalization of CHF2.0b, and total annual CEO compensation was reported as CHF3.0m for the year to December 2024. 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 CHF675k.

In comparison with other companies in the Swiss Life Sciences industry with market capitalizations ranging from CHF859m to CHF2.8b, the reported median CEO total compensation was CHF1.0m. This suggests that Achim von Leoprechting is paid more than the median for the industry. Furthermore, Achim von Leoprechting directly owns CHF974k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	CHF675k	CHF671k	22%
Other	CHF2.4m	CHF2.5m	78%
Total Compensation	CHF3.0m	CHF3.1m	100%

Talking in terms of the industry, salary represented approximately 37% of total compensation out of all the companies we analyzed, while other remuneration made up 63% of the pie. Tecan Group pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Tecan Group AG's Growth Numbers

Tecan Group AG has reduced its earnings per share by 19% a year over the last three years. In the last year, its revenue is down 13%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has Tecan Group AG Been A Good Investment?

With a total shareholder return of -58% over three years, Tecan Group AG shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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 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've identified 1 warning sign for Tecan Group that investors should be aware of in a dynamic business environment.

Switching gears from Tecan Group, 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.