Shareholders May Not Be So Generous With HAKI Safety AB (publ)'s (STO:HAKI B) CEO Compensation And Here's Why

Key Insights

• HAKI Safety will host its Annual General Meeting on 22nd of April
• Salary of kr3.10m is part of CEO Sverker Lindberg's total remuneration
• The overall pay is 131% above the industry average
• HAKI Safety's EPS grew by 27% over the past three years while total shareholder return over the past three years was 47%

Performance at HAKI Safety AB (publ) (STO:HAKI B) has been reasonably good and CEO Sverker Lindberg has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 22nd of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for HAKI Safety

How Does Total Compensation For Sverker Lindberg Compare With Other Companies In The Industry?

At the time of writing, our data shows that HAKI Safety AB (publ) has a market capitalization of kr852m, and reported total annual CEO compensation of kr4.8m for the year to December 2023. This was the same as last year. Notably, the salary which is kr3.10m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Swedish Industrials industry with market capitalizations below kr2.2b, we found that the median total CEO compensation was kr2.1m. Hence, we can conclude that Sverker Lindberg is remunerated higher than the industry median. Furthermore, Sverker Lindberg directly owns kr937k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	kr3.1m	kr3.0m	65%
Other	kr1.7m	kr1.8m	35%
Total Compensation	kr4.8m	kr4.8m	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. Although there is a difference in how total compensation is set, HAKI Safety more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at HAKI Safety AB (publ)'s Growth Numbers

Over the past three years, HAKI Safety AB (publ) has seen its earnings per share (EPS) grow by 27% per year. Its revenue is up 1.7% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has HAKI Safety AB (publ) Been A Good Investment?

Boasting a total shareholder return of 47% over three years, HAKI Safety AB (publ) has done well by shareholders. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 5 warning signs for HAKI Safety that investors should think about before committing capital to this stock.

Important note: HAKI Safety is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.