Shareholders May Not Be So Generous With Cavotec SA's (STO:CCC) CEO Compensation And Here's Why

Key Insights

• Cavotec will host its Annual General Meeting on 3rd of June
• CEO David Pagels' total compensation includes salary of €506.1k
• The total compensation is 81% higher than the average for the industry
• Cavotec's total shareholder return over the past three years was 7.9% while its EPS grew by 79% over the past three years

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Performance at Cavotec SA (STO:CCC) has been reasonably good and CEO David Pagels has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 3rd of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Cavotec

How Does Total Compensation For David Pagels Compare With Other Companies In The Industry?

Our data indicates that Cavotec SA has a market capitalization of kr2.0b, and total annual CEO compensation was reported as €1.0m for the year to December 2024. That's a fairly small increase of 7.2% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at €506k.

On comparing similar companies from the Swedish Machinery industry with market caps ranging from kr962m to kr3.8b, we found that the median CEO total compensation was €580k. Accordingly, our analysis reveals that Cavotec SA pays David Pagels north of the industry median.

Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. In Cavotec's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Cavotec SA's Growth

Cavotec SA's earnings per share (EPS) grew 79% per year over the last three years. In the last year, its revenue is down 7.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Cavotec SA Been A Good Investment?

Cavotec SA has not done too badly by shareholders, with a total return of 7.9%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

Shareholders may want to check for free if Cavotec insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.