We Discuss Why Meyer Burger Technology AG's (VTX:MBTN) CEO Compensation May Be Closely Reviewed

Key Insights

• Meyer Burger Technology to hold its Annual General Meeting on 25th of June
• Total pay for CEO Gunter Erfurt includes CHF300.0k salary
• The overall pay is 119% above the industry average
• Over the past three years, Meyer Burger Technology's EPS fell by 21% and over the past three years, the total loss to shareholders 96%

Meyer Burger Technology AG (VTX:MBTN) has not performed well recently and CEO Gunter Erfurt will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 25th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Meyer Burger Technology

Comparing Meyer Burger Technology AG's CEO Compensation With The Industry

According to our data, Meyer Burger Technology AG has a market capitalization of CHF168m, and paid its CEO total annual compensation worth CHF956k over the year to December 2023. We note that's an increase of 15% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF300k.

On examining similar-sized companies in the Switzerland Semiconductor industry with market capitalizations between CHF88m and CHF354m, we discovered that the median CEO total compensation of that group was CHF437k. This suggests that Gunter Erfurt is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	CHF300k	CHF256k	31%
Other	CHF656k	CHF577k	69%
Total Compensation	CHF956k	CHF833k	100%

On an industry level, around 47% of total compensation represents salary and 53% is other remuneration. Meyer Burger Technology sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Meyer Burger Technology AG's Growth

Over the last three years, Meyer Burger Technology AG has shrunk its earnings per share by 21% per year. In the last year, its revenue is down 8.3%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Meyer Burger Technology AG Been A Good Investment?

With a total shareholder return of -96% over three years, Meyer Burger Technology AG shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Meyer Burger Technology that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com