Our Take On Schaffner Holding's (VTX:SAHN) CEO Salary

This article will reflect on the compensation paid to Marc Aeschlimann who has served as CEO of Schaffner Holding AG (VTX:SAHN) since 2017. This analysis will also assess whether Schaffner Holding pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Schaffner Holding

Comparing Schaffner Holding AG's CEO Compensation With the industry

At the time of writing, our data shows that Schaffner Holding AG has a market capitalization of CHF130m, and reported total annual CEO compensation of CHF660k for the year to September 2020. Notably, that's a decrease of 8.7% over the year before. Notably, the salary which is CHF409.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below CHF178m, we found that the median total CEO compensation was CHF298k. Accordingly, our analysis reveals that Schaffner Holding AG pays Marc Aeschlimann north of the industry median. Furthermore, Marc Aeschlimann directly owns CHF291k worth of shares in the company.

On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. According to our research, Schaffner Holding has allocated a higher percentage of pay to salary in comparison to the wider 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 Schaffner Holding AG's Growth Numbers

Over the last three years, Schaffner Holding AG has shrunk its earnings per share by 18% per year. It saw its revenue drop 14% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 Schaffner Holding AG Been A Good Investment?

Given the total shareholder loss of 33% over three years, many shareholders in Schaffner Holding AG are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Marc is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. To make matters worse, EPS growth has also been negative during this period. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Schaffner Holding that investors should be aware of in a dynamic business environment.

Important note: Schaffner Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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