Yahoo Finance Here's Why Tecan Group AG's (VTX:TECN) CEO May Deserve A Raise
Key Insights
Tecan Group's Annual General Meeting to take place on 18th of April
CEO Achim von Leoprechting's total compensation includes salary of CHF660.0k
The total compensation is 33% less than the average for the industry
Over the past three years, Tecan Group's EPS grew by 15% and over the past three years, the total shareholder return was 33%
The impressive results at Tecan Group AG (VTX:TECN) recently will be great news for shareholders. At the upcoming AGM on 18th of April, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for Tecan Group
How Does Total Compensation For Achim von Leoprechting Compare With Other Companies In The Industry?
According to our data, Tecan Group AG has a market capitalization of CHF5.0b, and paid its CEO total annual compensation worth CHF2.8m over the year to December 2022. Notably, that's a decrease of 11% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF660k.
For comparison, other companies in the Swiss Life Sciences industry with market capitalizations ranging between CHF3.6b and CHF11b had a median total CEO compensation of CHF4.2m. In other words, Tecan Group pays its CEO lower than the industry median. Furthermore, Achim von Leoprechting directly owns CHF1.9m worth of shares in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CHF660k | CHF660k | 24% |
Other | CHF2.1m | CHF2.5m | 76% |
Total Compensation | CHF2.8m | CHF3.1m | 100% |
Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. Our data reveals that Tecan Group allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Tecan Group AG's Growth
Tecan Group AG's earnings per share (EPS) grew 15% per year over the last three years. Its revenue is up 21% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Tecan Group AG Been A Good Investment?
We think that the total shareholder return of 33%, over three years, would leave most Tecan Group AG shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
Shareholders may want to check for free if Tecan Group insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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