Yahoo Finance Shareholders Will Probably Not Have Any Issues With Swiss Life Holding AG's (VTX:SLHN) CEO Compensation
Key Insights
Swiss Life Holding will host its Annual General Meeting on 15th of May
CEO Patrick Frost's total compensation includes salary of CHF1.50m
The overall pay is comparable to the industry average
Swiss Life Holding's EPS grew by 4.6% over the past three years while total shareholder return over the past three years was 55%
Under the guidance of CEO Patrick Frost, Swiss Life Holding AG (VTX:SLHN) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for Swiss Life Holding
Comparing Swiss Life Holding AG's CEO Compensation With The Industry
According to our data, Swiss Life Holding AG has a market capitalization of CHF18b, and paid its CEO total annual compensation worth CHF4.0m over the year to December 2023. That's a slight decrease of 5.4% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at CHF1.5m.
On comparing similar companies in the Swiss Insurance industry with market capitalizations above CHF7.3b, we found that the median total CEO compensation was CHF3.9m. So it looks like Swiss Life Holding compensates Patrick Frost in line with the median for the industry. Moreover, Patrick Frost also holds CHF4.1m worth of Swiss Life Holding stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CHF1.5m | CHF1.5m | 37% |
Other | CHF2.5m | CHF2.8m | 63% |
Total Compensation | CHF4.0m | CHF4.3m | 100% |
Talking in terms of the industry, salary represented approximately 37% of total compensation out of all the companies we analyzed, while other remuneration made up 63% of the pie. Our data reveals that Swiss Life Holding allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Swiss Life Holding AG's Growth
Swiss Life Holding AG has seen its earnings per share (EPS) increase by 4.6% a year over the past three years. Its revenue is up 4.3% over the last year.
We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Swiss Life Holding AG Been A Good Investment?
Boasting a total shareholder return of 55% over three years, Swiss Life Holding AG has done well by shareholders. 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...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Swiss Life Holding that investors should be aware of in a dynamic business environment.
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.
