What Can We Learn About Investis Holding's (VTX:IREN) CEO Compensation?

Stéphane Bonvin has been the CEO of Investis Holding SA (VTX:IREN) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Investis Holding.

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 CHF1.1b, and paid its CEO total annual compensation worth CHF1.1m over the year to December 2019. That's a notable increase of 17% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF455k.

On comparing similar companies from the same industry with market caps ranging from CHF909m to CHF2.9b, we found that the median CEO total compensation was CHF1.1m. From this we gather that Stéphane Bonvin is paid around the median for CEOs in the industry. Furthermore, Stéphane Bonvin directly owns CHF862m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 55% of total compensation represents salary and 45% is other remuneration. It's interesting to note that Investis Holding allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Investis Holding SA's Growth Numbers

Over the past three years, Investis Holding SA has seen its earnings per share (EPS) grow by 23% per year. In the last year, its revenue is down 10%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Investis Holding SA Been A Good Investment?

Most shareholders would probably be pleased with Investis Holding SA for providing a total return of 63% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, Stéphane is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Investis Holding you should be aware of, and 1 of them is concerning.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. 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.
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