Increases to CEO Compensation Might Be Put On Hold For Now at Ina Invest AG (VTX:INA)

Key Insights

• Ina Invest will host its Annual General Meeting on 31st of March
• Salary of CHF437.0k is part of CEO Marc Pointet's total remuneration
• The overall pay is 59% above the industry average
• Over the past three years, Ina Invest's EPS fell by 107% and over the past three years, the total shareholder return was 15%

Despite Ina Invest AG's (VTX:INA) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 31st of March. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for Ina Invest

Comparing Ina Invest AG's CEO Compensation With The Industry

Our data indicates that Ina Invest AG has a market capitalization of CHF364m, and total annual CEO compensation was reported as CHF865k for the year to December 2024. Notably, that's an increase of 10% over the year before. In particular, the salary of CHF437.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the Swiss Real Estate industry with market caps ranging from CHF177m to CHF706m, we found that the median CEO total compensation was CHF545k. Hence, we can conclude that Marc Pointet is remunerated higher than the industry median.

On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. There isn't a significant difference between Ina Invest and the broader market, in terms of salary allocation in the overall compensation package. 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.

Ina Invest AG's Growth

Over the last three years, Ina Invest AG has shrunk its earnings per share by 107% per year. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Ina Invest AG Been A Good Investment?

With a total shareholder return of 15% over three years, Ina Invest AG shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with 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. That's why we did some digging and identified 1 warning sign for Ina Invest that you should be aware of before investing.

Important note: Ina Invest 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.