Yahoo Finance Meyer Burger Technology AG's (VTX:MBTN) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
Meyer Burger Technology's Annual General Meeting to take place on 25th of June
CEO Gunter Erfurt's total compensation includes salary of CHF300.0k
The total compensation is 119% higher than the average for the industry
Over the past three years, Meyer Burger Technology's EPS fell by 21% and over the past three years, the total loss to shareholders 96%
Meyer Burger Technology AG (VTX:MBTN) has not performed well recently and CEO Gunter Erfurt will probably need to up their game. At the upcoming AGM on 25th of June, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.
View our latest analysis for Meyer Burger Technology
Comparing Meyer Burger Technology AG's CEO Compensation With The Industry
Our data indicates that Meyer Burger Technology AG has a market capitalization of CHF168m, and total annual CEO compensation was reported as CHF956k for the year to December 2023. We note that's an increase of 15% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF300k.
On comparing similar companies from the Switzerland Semiconductor industry with market caps ranging from CHF88m to CHF354m, we found that the median CEO total compensation was CHF437k. Accordingly, our analysis reveals that Meyer Burger Technology AG pays Gunter Erfurt north of the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CHF300k | CHF256k | 31% |
Other | CHF656k | CHF577k | 69% |
Total Compensation | CHF956k | CHF833k | 100% |
On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. In Meyer Burger Technology's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Meyer Burger Technology AG's Growth
Meyer Burger Technology AG has reduced its earnings per share by 21% a year over the last three years. It saw its revenue drop 8.3% over the last year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Meyer Burger Technology AG Been A Good Investment?
Few Meyer Burger Technology AG shareholders would feel satisfied with the return of -96% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Meyer Burger Technology that investors should think about before committing capital to this stock.
Important note: Meyer Burger Technology is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
