Is Resurs Holding AB (publ)’s (STO:RESURS) CEO Being Overpaid?

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Kenneth Nilsson has been the CEO of Resurs Holding AB (publ) (STO:RESURS) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Resurs Holding

How Does Kenneth Nilsson’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Resurs Holding AB (publ) has a market cap of kr11b, and is paying total annual CEO compensation of kr5.9m. (This number is for the twelve months until December 2018). That’s below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at kr4.8m. We examined companies with market caps from kr3.8b to kr15b, and discovered that the median CEO total compensation of that group was kr5.5m.

So Kenneth Nilsson receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Resurs Holding, below.

OM:RESURS CEO Compensation, May 13th 2019
OM:RESURS CEO Compensation, May 13th 2019

Is Resurs Holding AB (publ) Growing?

Over the last three years Resurs Holding AB (publ) has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). In the last year, its revenue is up 9.5%.

This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.

Has Resurs Holding AB (publ) Been A Good Investment?

With a total shareholder return of 23% over three years, Resurs Holding AB (publ) shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Remuneration for Kenneth Nilsson is close enough to the median pay for a CEO of a similar sized company .

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Resurs Holding shares (free trial).

If you want to buy a stock that is better than Resurs Holding, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.