The Compensation For BKW AG's (VTX:BKW) CEO Looks Deserved And Here's Why

Key Insights

• BKW's Annual General Meeting to take place on 29th of April
• Salary of CHF800.0k is part of CEO Robert Itschner's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, BKW's EPS grew by 27% and over the past three years, the total shareholder return was 49%

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We have been pretty impressed with the performance at BKW AG (VTX:BKW) recently and CEO Robert Itschner deserves a mention for their role in it. Coming up to the next AGM on 29th of April, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for BKW

Comparing BKW AG's CEO Compensation With The Industry

According to our data, BKW AG has a market capitalization of CHF8.3b, and paid its CEO total annual compensation worth CHF1.6m over the year to December 2024. That's slightly lower by 4.2% over the previous year. We note that the salary of CHF800.0k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Switzerland Electric Utilities industry with market capitalizations above CHF6.5b, reported a median total CEO compensation of CHF1.7m. So it looks like BKW compensates Robert Itschner in line with the median for the industry. Moreover, Robert Itschner also holds CHF354k worth of BKW stock directly under their own name.

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. There isn't a significant difference between BKW and the broader market, in terms of salary allocation in the overall compensation package. 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 BKW AG's Growth Numbers

BKW AG's earnings per share (EPS) grew 27% per year over the last three years. Its revenue is up 6.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 BKW AG Been A Good Investment?

Most shareholders would probably be pleased with BKW AG for providing a total return of 49% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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. That's why we did some digging and identified 1 warning sign for BKW that investors should think about before committing capital to this stock.

Important note: BKW 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. 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.