Shareholders May Be Wary Of Increasing Leonteq AG's (VTX:LEON) CEO Compensation Package

In This Article:

Key Insights

  • Leonteq to hold its Annual General Meeting on 28th of March

  • CEO Lukas Ruflin's total compensation includes salary of CHF977.0k

  • Total compensation is 143% above industry average

  • Leonteq's three-year loss to shareholders was 37% while its EPS was down 18% over the past three years

Leonteq AG (VTX:LEON) has not performed well recently and CEO Lukas Ruflin will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 28th of March. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Leonteq

How Does Total Compensation For Lukas Ruflin Compare With Other Companies In The Industry?

Our data indicates that Leonteq AG has a market capitalization of CHF451m, and total annual CEO compensation was reported as CHF2.2m for the year to December 2023. Notably, that's a decrease of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF977k.

On comparing similar companies from the Swiss Capital Markets industry with market caps ranging from CHF180m to CHF718m, we found that the median CEO total compensation was CHF908k. Accordingly, our analysis reveals that Leonteq AG pays Lukas Ruflin north of the industry median. Furthermore, Lukas Ruflin directly owns CHF41m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2023

2022

Proportion (2023)

Salary

CHF977k

CHF977k

44%

Other

CHF1.2m

CHF1.6m

56%

Total Compensation

CHF2.2m

CHF2.6m

100%

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. Leonteq is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
SWX:LEON CEO Compensation March 22nd 2024

Leonteq AG's Growth

Leonteq AG has reduced its earnings per share by 18% a year over the last three years. Its revenue is down 44% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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.