Yahoo Finance How Should Investors React To Swisscom AG’s (VTX:SCMN) CEO Pay?
In 2013 Urs Schaeppi was appointed CEO of Swisscom AG (VTX:SCMN). This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Swisscom
How Does Urs Schaeppi’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Swisscom AG has a market cap of CHF23.6b, and is paying total annual CEO compensation of CHF2m. That’s a fairly small increase of 1.9% on year before. We looked at a group of companies with market capitalizations over CHF8.0b and the median CEO compensation was CHF5m.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Swisscom has changed from year to year.
Is Swisscom AG Growing?
On average over the last three years, Swisscom AG has grown earnings per share (EPS) by 3.3% each year. In the last year, its revenue is up 1.8%.
I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Swisscom AG Been A Good Investment?
Swisscom AG has generated a total shareholder return of 2.6% over three years, so most shareholders wouldn’t be too disappointed. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
It looks like Swisscom AG pays its CEO less than the average at large companies.
Urs Schaeppi receives relatively low remuneration compared to other large companies. But the company isn’t exactly firing on all cylinders, from my perspective. However I do not find the CEO compensation to be concerning. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Swisscom AG (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
