We Think LEM Holding SA's (VTX:LEHN) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• LEM Holding to hold its Annual General Meeting on 26th of June
• Total pay for CEO Frank Rehfeld includes CHF525.0k salary
• Total compensation is similar to the industry average
• LEM Holding's EPS declined by 51% over the past three years while total shareholder loss over the past three years was 54%

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LEM Holding SA (VTX:LEHN) has not performed well recently and CEO Frank Rehfeld will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 26th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for LEM Holding

How Does Total Compensation For Frank Rehfeld Compare With Other Companies In The Industry?

At the time of writing, our data shows that LEM Holding SA has a market capitalization of CHF886m, and reported total annual CEO compensation of CHF803k for the year to March 2025. We note that's a decrease of 33% compared to last year. We note that the salary portion, which stands at CHF525.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Swiss Electronic industry with market capitalizations between CHF326m and CHF1.3b, we discovered that the median CEO total compensation of that group was CHF723k. From this we gather that Frank Rehfeld is paid around the median for CEOs in the industry.

Talking in terms of the industry, salary represented approximately 40% of total compensation out of all the companies we analyzed, while other remuneration made up 60% of the pie. It's interesting to note that LEM Holding 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.

LEM Holding SA's Growth

Over the last three years, LEM Holding SA has shrunk its earnings per share by 51% per year. In the last year, its revenue is down 24%.

Overall this is not a very positive result for shareholders. 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has LEM Holding SA Been A Good Investment?

With a total shareholder return of -54% over three years, LEM Holding SA shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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. We've identified 3 warning signs for LEM Holding that investors should be aware of in a dynamic business environment.

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.