Eltel AB (publ)'s (STO:ELTEL) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Eltel to hold its Annual General Meeting on 13th of May
• CEO Hakan Dahlstrom's total compensation includes salary of €551.0k
• The total compensation is 148% higher than the average for the industry
• Eltel's three-year loss to shareholders was 4.4% while its EPS was down 38% over the past three years

We check all companies for important risks. See what we found for Eltel in our free report.

The results at Eltel AB (publ) (STO:ELTEL) have been quite disappointing recently and CEO Hakan Dahlstrom bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 13th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Eltel

How Does Total Compensation For Hakan Dahlstrom Compare With Other Companies In The Industry?

At the time of writing, our data shows that Eltel AB (publ) has a market capitalization of kr1.3b, and reported total annual CEO compensation of €914k for the year to December 2024. That's slightly lower by 7.0% over the previous year. We note that the salary portion, which stands at €551.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Swedish Construction industry with market capitalizations below kr1.9b, reported a median total CEO compensation of €369k. Accordingly, our analysis reveals that Eltel AB (publ) pays Hakan Dahlstrom north of the industry median. Furthermore, Hakan Dahlstrom directly owns kr7.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	€551k	€533k	60%
Other	€363k	€450k	40%
Total Compensation	€914k	€983k	100%

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. There isn't a significant difference between Eltel and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Eltel AB (publ)'s Growth

Over the last three years, Eltel AB (publ) has shrunk its earnings per share by 38% per year. In the last year, its revenue is down 1.9%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Eltel AB (publ) Been A Good Investment?

Since shareholders would have lost about 4.4% over three years, some Eltel AB (publ) investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Eltel (free visualization of insider trades).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.