Shareholders May Be More Conservative With Flughafen Zürich AG's (VTX:FHZN) CEO Compensation For Now

Key Insights

• Flughafen Zürich to hold its Annual General Meeting on 14th of April
• Total pay for CEO Lukas Brosi includes CHF420.0k salary
• The overall pay is 345% above the industry average
• Flughafen Zürich's EPS grew by 50% over the past three years while total shareholder return over the past three years was 27%

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Under the guidance of CEO Lukas Brosi, Flughafen Zürich AG (VTX:FHZN) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of April. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Flughafen Zürich

Comparing Flughafen Zürich AG's CEO Compensation With The Industry

Our data indicates that Flughafen Zürich AG has a market capitalization of CHF6.0b, and total annual CEO compensation was reported as CHF1.1m for the year to December 2024. That's a fairly small increase of 7.3% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CHF420k.

In comparison with other companies in the Switzerland Infrastructure industry with market capitalizations ranging from CHF3.4b to CHF10b, the reported median CEO total compensation was CHF253k. Accordingly, our analysis reveals that Flughafen Zürich AG pays Lukas Brosi north of the industry median. Moreover, Lukas Brosi also holds CHF637k worth of Flughafen Zürich stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	CHF420k	CHF365k	37%
Other	CHF705k	CHF684k	63%
Total Compensation	CHF1.1m	CHF1.0m	100%

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Flughafen Zürich pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Flughafen Zürich AG's Growth Numbers

Flughafen Zürich AG has seen its earnings per share (EPS) increase by 50% a year over the past three years. Its revenue is up 7.3% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Flughafen Zürich AG Been A Good Investment?

Flughafen Zürich AG has served shareholders reasonably well, with a total return of 27% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Flughafen Zürich that investors should be aware of in a dynamic business environment.

Switching gears from Flughafen Zürich, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.