Food group Aryzta said a performance-related bonus of 958,000 Swiss francs (€877,000) due to its chief executive Owen Killian for the 2016 financial year has been withheld "pending resumption of growth in underlying fully diluted earnings per share".
The company, which owns the Cuisine de France brand among others, last week reported a drop in earnings with underlying fully diluted EPS falling by five per cent to 350.3 cent despite a 1.5 rise in revenue.
Aryzta's annual report showed that Killian received a basic salary of 1,277,000 Swiss francs (€1,169,000) for 2016, unchanged from the previous year. He also received benefits-in-kind worth 83,000 Swiss francs (€76,000) and pension contributions of 192,000 Swiss francs (€176,000), also unchanged from 2015. He did not receive a bonus for the 2015 financial year.
Earlier this year, Killian sold shares worth more than €15.5 million to meet a collateral call, unnerving investors and prompting a drop in the company's share price. Aryzta was formed in 2008 through the merger of IAWS and Switzerland’s Hiestand, creating a food industry giant, but it has struggled in recent years as its results have disappointed and it has been hit by exceptional costs.