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Is Bucher Industries AG's (VTX:BUCN) CEO Pay Justified?

Jacques Sanche has been the CEO of Bucher Industries AG (VTX:BUCN) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Bucher Industries

How Does Jacques Sanche's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Bucher Industries AG has a market cap of CHF3.2b, and reported total annual CEO compensation of CHF1.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CHF800k. We looked at a group of companies with market capitalizations from CHF2.0b to CHF6.4b, and the median CEO total compensation was CHF1.6m.

So Jacques Sanche receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Bucher Industries has changed over time.

SWX:BUCN CEO Compensation, September 20th 2019
SWX:BUCN CEO Compensation, September 20th 2019

Is Bucher Industries AG Growing?

On average over the last three years, Bucher Industries AG has grown earnings per share (EPS) by 22% each year (using a line of best fit). It achieved revenue growth of 9.4% 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 a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.

Has Bucher Industries AG Been A Good Investment?

I think that the total shareholder return of 37%, over three years, would leave most Bucher Industries AG shareholders smiling. 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...

Jacques Sanche is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Bucher Industries shares with their own money (free access).