Most Shareholders Will Probably Agree With Alligo AB (publ)'s (STO:ALLIGO B) CEO Compensation

Key Insights

• Alligo will host its Annual General Meeting on 21st of May
• Total pay for CEO Clein Ullenvik includes kr6.41m salary
• The overall pay is comparable to the industry average
• Alligo's total shareholder return over the past three years was 11% while its EPS was down 3.5% over the past three years

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The share price of Alligo AB (publ) (STO:ALLIGO B) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 21st of May. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for Alligo

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

Our data indicates that Alligo AB (publ) has a market capitalization of kr5.7b, and total annual CEO compensation was reported as kr8.6m for the year to December 2024. We note that's a decrease of 8.6% compared to last year. In particular, the salary of kr6.41m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Swedish Trade Distributors industry with market caps ranging from kr2.0b to kr7.8b, we found that the median CEO total compensation was kr10m. From this we gather that Clein Ullenvik is paid around the median for CEOs in the industry. What's more, Clein Ullenvik holds kr5.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr6.4m	kr5.7m	74%
Other	kr2.2m	kr3.7m	26%
Total Compensation	kr8.6m	kr9.4m	100%

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. It's interesting to note that Alligo 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.

Alligo AB (publ)'s Growth

Over the last three years, Alligo AB (publ) has shrunk its earnings per share by 3.5% per year. Its revenue is up 1.7% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Alligo AB (publ) Been A Good Investment?

With a total shareholder return of 11% over three years, Alligo AB (publ) shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

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 4 warning signs for Alligo that investors should be aware of in a dynamic business environment.

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.