In 2008 Heinz Baumgartner was appointed CEO of Schweiter Technologies AG (VTX:SWTQ). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Schweiter Technologies
How Does Heinz Baumgartner’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Schweiter Technologies AG has a market cap of CHF1.4b, and is paying total annual CEO compensation of CHF1.8m. (This number is for the twelve months until 2016). While we always look at total compensation first, we note that the salary component is less, at CHF800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CHF998m to CHF3.2b. The median total CEO compensation was CHF1.3m.
Thus we can conclude that Heinz Baumgartner receives more in total compensation than the median of a group of companies in the same market, and of similar size to Schweiter Technologies AG. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Schweiter Technologies, below.
Is Schweiter Technologies AG Growing?
Schweiter Technologies AG has increased its earnings per share (EPS) by an average of 18% a year, over the last three years Its revenue is up 10% over last year.
This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Schweiter Technologies AG Been A Good Investment?
Boasting a total shareholder return of 37% over three years, Schweiter Technologies AG has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We compared the total CEO remuneration paid by Schweiter Technologies AG, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Schweiter Technologies shares (free trial).