We Think The Compensation For Bergman & Beving AB (publ)'s (STO:BERG B) CEO Looks About Right

Key Insights

• Bergman & Beving to hold its Annual General Meeting on 29th of August
• Salary of kr4.89m is part of CEO Magnus Söderlind's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Bergman & Beving's EPS grew by 4.6% and over the past three years, the total shareholder return was 93%

Performance at Bergman & Beving AB (publ) (STO:BERG B) has been reasonably good and CEO Magnus Söderlind has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Bergman & Beving

How Does Total Compensation For Magnus Söderlind Compare With Other Companies In The Industry?

According to our data, Bergman & Beving AB (publ) has a market capitalization of kr7.9b, and paid its CEO total annual compensation worth kr7.7m over the year to March 2024. We note that's an increase of 11% above last year. Notably, the salary which is kr4.89m, represents most of the total compensation being paid.

On comparing similar companies from the Swedish Trade Distributors industry with market caps ranging from kr4.1b to kr16b, we found that the median CEO total compensation was kr9.2m. This suggests that Bergman & Beving remunerates its CEO largely in line with the industry average. Furthermore, Magnus Söderlind directly owns kr93m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr4.9m	kr4.4m	63%
Other	kr2.8m	kr2.6m	37%
Total Compensation	kr7.7m	kr7.0m	100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. Bergman & Beving is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 Bergman & Beving AB (publ)'s Growth Numbers

Over the past three years, Bergman & Beving AB (publ) has seen its earnings per share (EPS) grow by 4.6% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Bergman & Beving AB (publ) Been A Good Investment?

We think that the total shareholder return of 93%, over three years, would leave most Bergman & Beving 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Bergman & Beving that investors should think about before committing capital to this stock.

Important note: Bergman & Beving 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.

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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.