How Much Is Cell Impact AB (publ) (STO:CI B) Paying Its CEO?

Pär Teike became the CEO of Cell Impact AB (publ) (STO:CI B) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Cell Impact pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Cell Impact

How Does Total Compensation For Pär Teike Compare With Other Companies In The Industry?

At the time of writing, our data shows that Cell Impact AB (publ) has a market capitalization of kr1.6b, and reported total annual CEO compensation of kr2.3m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at kr1.61m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from kr826m to kr3.3b, the reported median CEO total compensation was kr4.5m. In other words, Cell Impact pays its CEO lower than the industry median.

On an industry level, roughly 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that Cell Impact pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Cell Impact AB (publ)'s Growth

Over the past three years, Cell Impact AB (publ) has seen its earnings per share (EPS) grow by 9.2% per year. Its revenue is up 79% over the last year.

We like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cell Impact AB (publ) Been A Good Investment?

We think that the total shareholder return of 242%, over three years, would leave most Cell Impact 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.

In Summary...

As we touched on above, Cell Impact AB (publ) is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, shareholder returns have been have been very pleasing, over the last three years, and that should put a smile on the faces of investors. As a result of the juicy return to investors, CEO compensation may well be quite reasonable.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 2 which make us uncomfortable) in Cell Impact we think you should know about.

Switching gears from Cell Impact, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. 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.
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