Here's Why Shareholders Should Examine Arundel AG's (VTX:ARON) CEO Compensation Package More Closely

Key Insights

• Arundel to hold its Annual General Meeting on 29th of May
• Total pay for CEO David Quint includes US$330.4k salary
• The overall pay is 60% above the industry average
• Over the past three years, Arundel's EPS fell by 62% and over the past three years, the total loss to shareholders 92%

Arundel AG (VTX:ARON) has not performed well recently and CEO David Quint will probably need to up their game. At the upcoming AGM on 29th of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Arundel

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

At the time of writing, our data shows that Arundel AG has a market capitalization of CHF3.1m, and reported total annual CEO compensation of US$422k for the year to December 2023. That's a notable increase of 16% on last year. In particular, the salary of US$330.4k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Swiss Real Estate industry with market capitalizations below CHF183m, reported a median total CEO compensation of US$263k. This suggests that David Quint is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	US$330k	US$281k	78%
Other	US$91k	US$81k	22%
Total Compensation	US$422k	US$362k	100%

Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. Arundel pays out 78% of remuneration in the form of a salary, significantly higher than the industry average. 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 Arundel AG's Growth Numbers

Over the last three years, Arundel AG has shrunk its earnings per share by 62% per year. Its revenue is down 3.3% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Arundel AG Been A Good Investment?

The return of -92% over three years would not have pleased Arundel AG shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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 an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for Arundel you should be aware of, and 4 of them are concerning.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.