Here's Why Mobimo Holding AG's (VTX:MOBN) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Mobimo Holding to hold its Annual General Meeting on 31st of March
• Salary of CHF603.0k is part of CEO Daniel Ducrey's total remuneration
• The total compensation is similar to the average for the industry
• Mobimo Holding's total shareholder return over the past three years was 18% while its EPS was down 6.5% over the past three years

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Despite positive share price growth of 18% for Mobimo Holding AG (VTX:MOBN) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 31st of March may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for Mobimo Holding

Comparing Mobimo Holding AG's CEO Compensation With The Industry

Our data indicates that Mobimo Holding AG has a market capitalization of CHF2.2b, and total annual CEO compensation was reported as CHF1.2m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF603k.

On examining similar-sized companies in the Swiss Real Estate industry with market capitalizations between CHF1.8b and CHF5.7b, we discovered that the median CEO total compensation of that group was CHF1.1m. From this we gather that Daniel Ducrey is paid around the median for CEOs in the industry. What's more, Daniel Ducrey holds CHF1.3m worth of shares in the company in their own name.

Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. Although there is a difference in how total compensation is set, Mobimo Holding more or less reflects the market in terms of setting the salary. 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 Mobimo Holding AG's Growth Numbers

Mobimo Holding AG has reduced its earnings per share by 6.5% a year over the last three years. In the last year, its revenue is up 8.9%.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Mobimo Holding AG Been A Good Investment?

Mobimo Holding AG has served shareholders reasonably well, with a total return of 18% 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...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 2 which don't sit too well with us) in Mobimo Holding we think you should know about.

Switching gears from Mobimo Holding, 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.