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Is Burckhardt Compression Holding AG (VTX:BCHN) Overpaying Its CEO? - Yahoo Finance

Marcel Pawlicek became the CEO of Burckhardt Compression Holding AG (VTX:BCHN) in 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Burckhardt Compression Holding

How Does Marcel Pawlicek's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Burckhardt Compression Holding AG has a market cap of CHF852m, and reported total annual CEO compensation of CHF770k for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CHF425k. When we examined a selection of companies with market caps ranging from CHF391m to CHF1.6b, we found the median CEO total compensation was CHF983k.

That means Marcel Pawlicek receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Burckhardt Compression Holding has changed from year to year.

SWX:BCHN CEO Compensation, February 25th 2020

Is Burckhardt Compression Holding AG Growing?

Over the last three years Burckhardt Compression Holding AG has shrunk its earnings per share by an average of 7.4% per year (measured with a line of best fit). It achieved revenue growth of 9.1% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Burckhardt Compression Holding AG Been A Good Investment?

Since shareholders would have lost about 4.8% over three years, some Burckhardt Compression Holding AG shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Marcel Pawlicek is paid around the same as most CEOs of similar size companies.

Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Burckhardt Compression Holding (free visualization of insider trades).

Important note: Burckhardt Compression Holding may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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Is Burckhardt Compression Holding AG (VTX:BCHN) Overpaying Its CEO? - Yahoo Finance
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