It's Unlikely That InVision Aktiengesellschaft's (ETR:IVX) CEO Will See A Huge Pay Rise This Year

Under the guidance of CEO Peter Bollenbeck, InVision Aktiengesellschaft (ETR:IVX) has performed reasonably well recently. As shareholders go into the upcoming AGM on 28 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for InVision

Comparing InVision Aktiengesellschaft's CEO Compensation With the industry

Our data indicates that InVision Aktiengesellschaft has a market capitalization of €64m, and total annual CEO compensation was reported as €365k for the year to December 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at €360.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under €164m, the reported median total CEO compensation was €239k. Hence, we can conclude that Peter Bollenbeck is remunerated higher than the industry median. Furthermore, Peter Bollenbeck directly owns €11m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	€360k	€360k	99%
Other	€4.7k	€4.4k	1%
Total Compensation	€365k	€364k	100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. Investors will find it interesting that InVision pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

InVision Aktiengesellschaft's Growth

Over the past three years, InVision Aktiengesellschaft has seen its earnings per share (EPS) grow by 59% per year. It achieved revenue growth of 3.9% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 InVision Aktiengesellschaft Been A Good Investment?

InVision Aktiengesellschaft has generated a total shareholder return of 31% over three years, so most shareholders would be reasonably content. 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.

To Conclude...

InVision pays its CEO a majority of compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for InVision (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from InVision, 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. 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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