In 2011 David Woolley was appointed CEO of Concentric AB (publ) (STO:COIC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Concentric
How Does David Woolley's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Concentric AB (publ) has a market cap of kr6.2b, and reported total annual CEO compensation of kr11m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr5.3m. We looked at a group of companies with market capitalizations from kr3.8b to kr15b, and the median CEO total compensation was kr6.1m.
As you can see, David Woolley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Concentric AB (publ) is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Concentric, below.
Is Concentric AB (publ) Growing?
Concentric AB (publ) has increased its earnings per share (EPS) by an average of 21% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 7.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Concentric AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with Concentric AB (publ) for providing a total return of 53% over three years. 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.
In Summary...
We compared the total CEO remuneration paid by Concentric AB (publ), and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Concentric.
Important note: Concentric may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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