Shareholders Will Likely Find Sensirion Holding AG's (VTX:SENS) CEO Compensation Acceptable

Key Insights

• Sensirion Holding will host its Annual General Meeting on 12th of May
• CEO Marc von Waldkirch's total compensation includes salary of CHF444.2k
• The overall pay is 50% below the industry average
• Over the past three years, Sensirion Holding's EPS fell by 101% and over the past three years, the total loss to shareholders 36%

We've discovered 1 warning sign about Sensirion Holding. View them for free.

The performance at Sensirion Holding AG (VTX:SENS) has been rather lacklustre of late and shareholders may be wondering what CEO Marc von Waldkirch is planning to do about this. At the next AGM coming up on 12th of May, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Sensirion Holding

How Does Total Compensation For Marc von Waldkirch Compare With Other Companies In The Industry?

Our data indicates that Sensirion Holding AG has a market capitalization of CHF1.0b, and total annual CEO compensation was reported as CHF595k for the year to December 2024. That's just a smallish increase of 7.1% on last year. We note that the salary portion, which stands at CHF444.2k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Swiss Electronic industry with market capitalizations ranging from CHF822m to CHF2.6b, the reported median CEO total compensation was CHF1.2m. In other words, Sensirion Holding pays its CEO lower than the industry median. What's more, Marc von Waldkirch holds CHF3.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CHF444k	CHF444k	75%
Other	CHF151k	CHF112k	25%
Total Compensation	CHF595k	CHF556k	100%

Speaking on an industry level, nearly 40% of total compensation represents salary, while the remainder of 60% is other remuneration. It's interesting to note that Sensirion 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.

Sensirion Holding AG's Growth

Over the last three years, Sensirion Holding AG has shrunk its earnings per share by 101% per year. In the last year, its revenue is up 19%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Sensirion Holding AG Been A Good Investment?

Few Sensirion Holding AG shareholders would feel satisfied with the return of -36% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning. The poor performance of the share price might have something to do with the lack of earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Sensirion 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.