Increases to Matas A/S' (CPH:MATAS) CEO Compensation Might Cool off for now

Key Insights

• Matas to hold its Annual General Meeting on 19th of June
• Total pay for CEO Gregers Wedell-Wedellsborg includes kr.6.00m salary
• The overall pay is 233% above the industry average
• Matas' EPS declined by 14% over the past three years while total shareholder return over the past three years was 21%

Performance at Matas A/S (CPH:MATAS) has been reasonably good and CEO Gregers Wedell-Wedellsborg has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Matas

Comparing Matas A/S' CEO Compensation With The Industry

At the time of writing, our data shows that Matas A/S has a market capitalization of kr.4.5b, and reported total annual CEO compensation of kr.26m for the year to March 2024. Notably, that's an increase of 73% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at kr.6.0m.

For comparison, other companies in the Denmark Specialty Retail industry with market capitalizations ranging between kr.2.8b and kr.11b had a median total CEO compensation of kr.7.8m. This suggests that Gregers Wedell-Wedellsborg is paid more than the median for the industry. Moreover, Gregers Wedell-Wedellsborg also holds kr.20m worth of Matas stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	kr.6.0m	kr.5.0m	23%
Other	kr.20m	kr.10m	77%
Total Compensation	kr.26m	kr.15m	100%

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. In Matas' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Matas A/S' Growth Numbers

Matas A/S has reduced its earnings per share by 14% a year over the last three years. It achieved revenue growth of 49% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Matas A/S Been A Good Investment?

With a total shareholder return of 21% over three years, Matas A/S shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for Matas that you should be aware of before investing.

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.