We Take A Look At Whether Swissquote Group Holding Ltd's (VTX:SQN) CEO May Be Underpaid
Key Insights
Swissquote Group Holding will host its Annual General Meeting on 8th of May
Total pay for CEO Marc Burki includes CHF550.0k salary
Total compensation is 35% below industry average
Swissquote Group Holding's total shareholder return over the past three years was 88% while its EPS grew by 34% over the past three years
The solid performance at Swissquote Group Holding Ltd (VTX:SQN) has been impressive and shareholders will probably be pleased to know that CEO Marc Burki has delivered. This would be kept in mind at the upcoming AGM on 8th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
Check out our latest analysis for Swissquote Group Holding
Comparing Swissquote Group Holding Ltd's CEO Compensation With The Industry
According to our data, Swissquote Group Holding Ltd has a market capitalization of CHF3.7b, and paid its CEO total annual compensation worth CHF1.1m over the year to December 2023. We note that's an increase of 27% above last year. Notably, the salary which is CHF550.0k, represents a considerable chunk of the total compensation being paid.
On comparing similar companies from the Swiss Capital Markets industry with market caps ranging from CHF1.8b to CHF5.9b, we found that the median CEO total compensation was CHF1.6m. Accordingly, Swissquote Group Holding pays its CEO under the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CHF550k | CHF550k | 52% |
Other | CHF507k | CHF284k | 48% |
Total Compensation | CHF1.1m | CHF834k | 100% |
Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. It's interesting to note that Swissquote Group Holding pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Swissquote Group Holding Ltd's Growth Numbers
Swissquote Group Holding Ltd's earnings per share (EPS) grew 34% per year over the last three years. Its revenue is up 29% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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.
Has Swissquote Group Holding Ltd Been A Good Investment?
Most shareholders would probably be pleased with Swissquote Group Holding Ltd for providing a total return of 88% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
So you may want to check if insiders are buying Swissquote Group Holding shares with their own money (free access).
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.