Why We Think Bergman & Beving AB (publ)'s (STO:BERG B) CEO Compensation Is Not Excessive At All

Key Insights

• Bergman & Beving's Annual General Meeting to take place on 28th of August
• Total pay for CEO Magnus Söderlind includes kr5.42m salary
• The total compensation is similar to the average for the industry
• Bergman & Beving's total shareholder return over the past three years was 274% while its EPS was down 35% over the past three years

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Bergman & Beving AB (publ) (STO:BERG B) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. The upcoming AGM on 28th of August may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for Bergman & Beving

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

Our data indicates that Bergman & Beving AB (publ) has a market capitalization of kr9.5b, and total annual CEO compensation was reported as kr8.1m for the year to March 2025. That's a fairly small increase of 4.4% over the previous year. We note that the salary portion, which stands at kr5.42m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Swedish Trade Distributors industry with market capitalizations ranging between kr3.8b and kr15b had a median total CEO compensation of kr8.6m. From this we gather that Magnus Söderlind is paid around the median for CEOs in the industry. Moreover, Magnus Söderlind also holds kr109m worth of Bergman & Beving stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. There isn't a significant difference between Bergman & Beving and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Bergman & Beving AB (publ)'s Growth Numbers

Over the last three years, Bergman & Beving AB (publ) has shrunk its earnings per share by 35% per year. In the last year, its revenue is up 5.9%.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Bergman & Beving AB (publ) Been A Good Investment?

Boasting a total shareholder return of 274% over three years, Bergman & Beving AB (publ) has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Bergman & Beving you should be aware of, and 1 of them is concerning.

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.