Our View On Impact Coatings' (STO:IMPC) CEO Pay

This article will reflect on the compensation paid to Torbjorn Sandberg who has served as CEO of Impact Coatings AB (publ) (STO:IMPC) since 2018. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Impact Coatings.

See our latest analysis for Impact Coatings

Comparing Impact Coatings AB (publ)'s CEO Compensation With the industry

Our data indicates that Impact Coatings AB (publ) has a market capitalization of kr1.2b, and total annual CEO compensation was reported as kr1.6m for the year to December 2019. That's a notable increase of 79% on last year. Notably, the salary of kr1.6m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below kr1.7b, reported a median total CEO compensation of kr3.3m. Accordingly, Impact Coatings pays its CEO under the industry median.

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. On a company level, Impact Coatings prefers to reward its CEO through a salary, opting not to pay Torbjorn Sandberg through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Impact Coatings AB (publ)'s Growth Numbers

Over the past three years, Impact Coatings AB (publ) has seen its earnings per share (EPS) grow by 21% per year. In the last year, its revenue is down 3.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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

Most shareholders would probably be pleased with Impact Coatings AB (publ) for providing a total return of 99% 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...

Impact Coatings pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Impact Coatings 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. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Torbjorn's performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Impact Coatings (1 doesn't sit too well with us!) that you should be aware of before investing here.

Important note: Impact Coatings 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.

When trading Impact Coatings or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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