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

Key Insights

• Addtech AB (publ.) to hold its Annual General Meeting on 27th of August
• Salary of kr9.49m is part of CEO Niklas Stenberg's total remuneration
• Total compensation is 58% below industry average
• Addtech AB (publ.)'s EPS grew by 19% over the past three years while total shareholder return over the past three years was 125%

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The impressive results at Addtech AB (publ.) (STO:ADDT B) recently will be great news for shareholders. At the upcoming AGM on 27th of August, 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. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Addtech AB (publ.)

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

Our data indicates that Addtech AB (publ.) has a market capitalization of kr93b, and total annual CEO compensation was reported as kr18m for the year to March 2025. We note that's a decrease of 25% compared to last year. Notably, the salary which is kr9.49m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Swedish Trade Distributors industry with market capitalizations above kr77b, reported a median total CEO compensation of kr41m. In other words, Addtech AB (publ.) pays its CEO lower than the industry median. What's more, Niklas Stenberg holds kr79m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. Addtech AB (publ.) pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

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

Over the past three years, Addtech AB (publ.) has seen its earnings per share (EPS) grow by 19% per year. Its revenue is up 9.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Addtech AB (publ.) Been A Good Investment?

Boasting a total shareholder return of 125% over three years, Addtech AB (publ.) has done well by shareholders. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them 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. That's why we did some digging and identified 1 warning sign for Addtech AB (publ.) that you should be aware of before investing.

Important note: Addtech AB (publ.) is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.