We Take A Look At Whether Addtech AB (publ.)'s (STO:ADDT B) CEO May Be Underpaid

By
Simply Wall St
Published
August 19, 2021
OM:ADDT B
Source: Shutterstock

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. At the upcoming AGM on 26 August 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company 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 kr48b, and reported total annual CEO compensation of kr8.8m for the year to March 2021. That is, the compensation was roughly the same as last year. In particular, the salary of kr5.55m, 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 kr35b to kr106b, we found that the median CEO total compensation was kr13m. In other words, Addtech AB (publ.) pays its CEO lower than the industry median. What's more, Niklas Stenberg holds kr40m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20212020Proportion (2021)
Salary kr5.5m kr5.3m 63%
Other kr3.2m kr3.4m 37%
Total Compensationkr8.8m kr8.7m100%

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that Addtech AB (publ.) pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
OM:ADDT B CEO Compensation August 20th 2021

A Look at Addtech AB (publ.)'s Growth Numbers

Addtech AB (publ.) has seen its earnings per share (EPS) increase by 13% a year over the past three years. Its revenue is up 1.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

Boasting a total shareholder return of 278% over three years, Addtech AB (publ.) has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Addtech AB (publ.) that you should be aware of before investing.

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.

If you decide to trade Addtech AB (publ.), use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.