Crealogix Holding AG's (VTX:CLXN) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Crealogix Holding to hold its Annual General Meeting on 25th of October
• Total pay for CEO Oliver Weber includes CHF450.0k salary
• The total compensation is 107% higher than the average for the industry
• Over the past three years, Crealogix Holding's EPS grew by 31% and over the past three years, the total loss to shareholders 58%

Shareholders of Crealogix Holding AG (VTX:CLXN) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 25th of October could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Crealogix Holding

How Does Total Compensation For Oliver Weber Compare With Other Companies In The Industry?

According to our data, Crealogix Holding AG has a market capitalization of CHF69m, and paid its CEO total annual compensation worth CHF552k over the year to June 2023. There was no change in the compensation compared to last year. In particular, the salary of CHF450.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Switzerland Software industry with market capitalizations below CHF180m, reported a median total CEO compensation of CHF267k. This suggests that Oliver Weber is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	CHF450k	CHF450k	82%
Other	CHF102k	CHF102k	18%
Total Compensation	CHF552k	CHF552k	100%

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Crealogix Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Crealogix Holding AG's Growth Numbers

Over the past three years, Crealogix Holding AG has seen its earnings per share (EPS) grow by 31% per year. It saw its revenue drop 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Crealogix Holding AG Been A Good Investment?

Few Crealogix Holding AG shareholders would feel satisfied with the return of -58% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which can't be ignored) in Crealogix Holding we think you should know about.

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.