Our View On Warteck Invest's (VTX:WARN) CEO Pay

Daniel Petitjean became the CEO of Warteck Invest AG (VTX:WARN) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Warteck Invest pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Warteck Invest

How Does Total Compensation For Daniel Petitjean Compare With Other Companies In The Industry?

According to our data, Warteck Invest AG has a market capitalization of CHF572m, and paid its CEO total annual compensation worth CHF532k over the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of CHF365.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from CHF355m to CHF1.4b, we found that the median CEO total compensation was CHF1.1m. That is to say, Daniel Petitjean is paid under the industry median.

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. It's interesting to note that Warteck Invest pays out a greater portion of remuneration through salary, compared to the industry. 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 Warteck Invest AG's Growth Numbers

Warteck Invest AG has seen its earnings per share (EPS) increase by 17% a year over the past three years. In the last year, its revenue is up 1.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Warteck Invest AG Been A Good Investment?

Most shareholders would probably be pleased with Warteck Invest AG for providing a total return of 39% 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 we touched on above, Warteck Invest AG is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

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 1 which doesn't sit too well with us) in Warteck Invest we think you should know about.

Switching gears from Warteck Invest, 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. 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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