Key Insights

• Swiss Re to hold its Annual General Meeting on 12th of April

• Salary of US$1.62m is part of CEO Christian Mumenthaler's total remuneration

• The total compensation is 38% higher than the average for the industry

• Swiss Re's total shareholder return over the past three years was 52% while its EPS was down 13% over the past three years

Despite strong share price growth of 52% for Swiss Re AG (VTX:SREN) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 12th of April. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Swiss Re

Comparing Swiss Re AG's CEO Compensation With The Industry

Our data indicates that Swiss Re AG has a market capitalization of CHF27b, and total annual CEO compensation was reported as US$6.7m for the year to December 2022. We note that's a decrease of 14% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.6m.

On comparing similar companies in the Swiss Insurance industry with market capitalizations above CHF7.2b, we found that the median total CEO compensation was US$4.8m. Accordingly, our analysis reveals that Swiss Re AG pays Christian Mumenthaler north of the industry median. Moreover, Christian Mumenthaler also holds CHF8.9m worth of Swiss Re stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. Swiss Re pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Swiss Re AG's Growth Numbers

Over the last three years, Swiss Re AG has shrunk its earnings per share by 13% per year. Its revenue is down 1.6% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..