CTT Systems AB (publ)'s (STO:CTT) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• CTT Systems will host its Annual General Meeting on 8th of May
• Salary of kr2.44m is part of CEO Henrik Hojer's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, CTT Systems' EPS grew by 34% and over the past three years, the total shareholder return was 12%

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CEO Henrik Hojer has done a decent job of delivering relatively good performance at CTT Systems AB (publ) (STO:CTT) recently. As shareholders go into the upcoming AGM on 8th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for CTT Systems

How Does Total Compensation For Henrik Hojer Compare With Other Companies In The Industry?

Our data indicates that CTT Systems AB (publ) has a market capitalization of kr2.6b, and total annual CEO compensation was reported as kr4.1m for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is kr2.44m, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the Swedish Aerospace & Defense industry with market caps ranging from kr975m to kr3.9b, we found that the median CEO total compensation was kr5.2m. From this we gather that Henrik Hojer is paid around the median for CEOs in the industry. Furthermore, Henrik Hojer directly owns kr2.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr2.4m	kr2.4m	59%
Other	kr1.7m	kr1.7m	41%
Total Compensation	kr4.1m	kr4.1m	100%

Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. Our data reveals that CTT Systems allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

CTT Systems AB (publ)'s Growth

Over the past three years, CTT Systems AB (publ) has seen its earnings per share (EPS) grow by 34% per year. Its revenue is down 12% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 CTT Systems AB (publ) Been A Good Investment?

With a total shareholder return of 12% over three years, CTT Systems AB (publ) shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for CTT Systems that you should be aware of before investing.

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.