We Discuss Whether Addtech AB (publ.)'s (STO:ADDT B) CEO Is Due For A Pay Rise

Key Insights

• Addtech AB (publ.) will host its Annual General Meeting on 22nd of August
• Salary of kr8.85m is part of CEO Niklas Stenberg's total remuneration
• The overall pay is 32% below the industry average
• Over the past three years, Addtech AB (publ.)'s EPS grew by 31% and over the past three years, the total shareholder return was 88%

Shareholders will be pleased by the impressive results for Addtech AB (publ.) (STO:ADDT B) recently and CEO Niklas Stenberg has played a key role. This would be kept in mind at the upcoming AGM on 22nd of August which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Addtech AB (publ.)

Comparing Addtech AB (publ.)'s CEO Compensation With The Industry

At the time of writing, our data shows that Addtech AB (publ.) has a market capitalization of kr87b, and reported total annual CEO compensation of kr23m for the year to March 2024. Notably, that's an increase of 69% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at kr8.8m.

On comparing similar companies from the Swedish Trade Distributors industry with market caps ranging from kr42b to kr126b, we found that the median CEO total compensation was kr34m. In other words, Addtech AB (publ.) pays its CEO lower than the industry median. Moreover, Niklas Stenberg also holds kr83m worth of Addtech AB (publ.) 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	kr8.8m	kr7.9m	38%
Other	kr15m	kr5.9m	62%
Total Compensation	kr23m	kr14m	100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. It's interesting to note that Addtech AB (publ.) allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Addtech AB (publ.)'s Growth

Addtech AB (publ.)'s earnings per share (EPS) grew 31% per year over the last three years. It achieved revenue growth of 4.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Addtech AB (publ.) Been A Good Investment?

We think that the total shareholder return of 88%, over three years, would leave most Addtech AB (publ.) shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Addtech AB (publ.) that investors should be aware of in a dynamic business environment.

Switching gears from Addtech AB (publ.), 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.