The Compensation For TF Bank AB (publ)'s (STO:TFBANK) CEO Looks Deserved And Here's Why

We have been pretty impressed with the performance at TF Bank AB (publ) (STO:TFBANK) recently and CEO Mattias Carlsson deserves a mention for their role in it. Coming up to the next AGM on 04 May 2021, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for TF Bank

How Does Total Compensation For Mattias Carlsson Compare With Other Companies In The Industry?

Our data indicates that TF Bank AB (publ) has a market capitalization of kr3.2b, and total annual CEO compensation was reported as kr4.6m for the year to December 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of kr3.65m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from kr1.7b to kr6.7b, we found that the median CEO total compensation was kr4.7m. From this we gather that Mattias Carlsson is paid around the median for CEOs in the industry. Furthermore, Mattias Carlsson directly owns kr42m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	kr3.7m	kr3.6m	79%
Other	kr965k	kr950k	21%
Total Compensation	kr4.6m	kr4.5m	100%

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Our data reveals that TF Bank allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

TF Bank AB (publ)'s Growth

Over the past three years, TF Bank AB (publ) has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 TF Bank AB (publ) Been A Good Investment?

Most shareholders would probably be pleased with TF Bank AB (publ) for providing a total return of 115% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for TF Bank that investors should think about before committing capital to this stock.

Switching gears from TF Bank, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. 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.
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