It Looks Like BE Group AB (publ)'s (STO:BEGR) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• BE Group's Annual General Meeting to take place on 23rd of April
• CEO Peter Andersson's total compensation includes salary of kr2.85m
• The overall pay is comparable to the industry average
• Over the past three years, BE Group's EPS fell by 107% and over the past three years, the total loss to shareholders 78%

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 results at BE Group AB (publ) (STO:BEGR) have been quite disappointing recently and CEO Peter Andersson bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of April. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for BE Group

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

Our data indicates that BE Group AB (publ) has a market capitalization of kr551m, and total annual CEO compensation was reported as kr3.7m for the year to December 2024. That's a modest increase of 6.4% on the prior year. We note that the salary portion, which stands at kr2.85m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Swedish Trade Distributors industry with market capitalizations below kr2.0b, we found that the median total CEO compensation was kr3.3m. So it looks like BE Group compensates Peter Andersson in line with the median for the industry.

Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. BE Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

BE Group AB (publ)'s Growth

Over the last three years, BE Group AB (publ) has shrunk its earnings per share by 107% per year. Its revenue is down 12% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has BE Group AB (publ) Been A Good Investment?

The return of -78% over three years would not have pleased BE Group AB (publ) shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for BE Group (1 is concerning!) that you should be aware of before investing here.

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.

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.