This Is Why Investis Holding SA's (VTX:IREN) CEO Compensation Looks Appropriate

Key Insights

• Investis Holding will host its Annual General Meeting on 18th of April
• CEO Stéphane Bonvin's total compensation includes salary of CHF455.0k
• The total compensation is similar to the average for the industry
• Over the past three years, Investis Holding's EPS fell by 47% and over the past three years, the total shareholder return was 12%

Despite Investis Holding SA's (VTX:IREN) 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 18th of April. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. 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 Investis Holding

Comparing Investis Holding SA's CEO Compensation With The Industry

According to our data, Investis Holding SA has a market capitalization of CHF1.3b, and paid its CEO total annual compensation worth CHF1.2m over the year to December 2023. That's a notable increase of 8.4% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF455k.

In comparison with other companies in the Swiss Real Estate industry with market capitalizations ranging from CHF910m to CHF2.9b, the reported median CEO total compensation was CHF1.2m. This suggests that Investis Holding remunerates its CEO largely in line with the industry average. Furthermore, Stéphane Bonvin directly owns CHF994m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CHF455k	CHF455k	38%
Other	CHF737k	CHF645k	62%
Total Compensation	CHF1.2m	CHF1.1m	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. In Investis Holding's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Investis Holding SA's Growth Numbers

Over the last three years, Investis Holding SA has shrunk its earnings per share by 47% per year. In the last year, its revenue is up 1.8%.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Investis Holding SA Been A Good Investment?

Investis Holding SA has served shareholders reasonably well, with a total return of 12% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Investis Holding that investors should look into moving forward.

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.