Most Shareholders Will Probably Agree With Skandinaviska Enskilda Banken AB (publ)'s (STO:SEB A) CEO Compensation

Under the guidance of CEO Johan Torgeby, Skandinaviska Enskilda Banken AB (publ) (STO:SEB A) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22 March 2022. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Skandinaviska Enskilda Banken

How Does Total Compensation For Johan Torgeby Compare With Other Companies In The Industry?

Our data indicates that Skandinaviska Enskilda Banken AB (publ) has a market capitalization of kr227b, and total annual CEO compensation was reported as kr21m for the year to December 2021. This means that the compensation hasn't changed much from last year. Notably, the salary which is kr12.5m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations above kr77b, reported a median total CEO compensation of kr27m. From this we gather that Johan Torgeby is paid around the median for CEOs in the industry. What's more, Johan Torgeby holds kr614k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	kr13m	kr13m	59%
Other	kr8.6m	kr8.1m	41%
Total Compensation	kr21m	kr21m	100%

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. In Skandinaviska Enskilda Banken's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Skandinaviska Enskilda Banken AB (publ)'s Growth

Skandinaviska Enskilda Banken AB (publ)'s earnings per share (EPS) grew 3.3% per year over the last three years. It achieved revenue growth of 24% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well 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 Skandinaviska Enskilda Banken AB (publ) Been A Good Investment?

With a total shareholder return of 27% over three years, Skandinaviska Enskilda Banken AB (publ) shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Skandinaviska Enskilda Banken we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.