Here's Why Indutrade AB (publ)'s (STO:INDT) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Indutrade to hold its Annual General Meeting on 3rd of April
• CEO Bo Annvik's total compensation includes salary of kr12.7m
• The overall pay is comparable to the industry average
• Over the past three years, Indutrade's EPS grew by 9.4% and over the past three years, the total shareholder return was 25%

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Performance at Indutrade AB (publ) (STO:INDT) has been reasonably good and CEO Bo Annvik has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 3rd of April. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Indutrade

Comparing Indutrade AB (publ)'s CEO Compensation With The Industry

According to our data, Indutrade AB (publ) has a market capitalization of kr105b, and paid its CEO total annual compensation worth kr26m over the year to December 2024. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at kr13m.

For comparison, other companies in the Swedish Machinery industry with market capitalizations above kr80b, reported a median total CEO compensation of kr31m. So it looks like Indutrade compensates Bo Annvik in line with the median for the industry. Moreover, Bo Annvik also holds kr20m worth of Indutrade stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	kr13m	kr12m	49%
Other	kr13m	kr13m	51%
Total Compensation	kr26m	kr25m	100%

Talking in terms of the industry, salary represented approximately 53% of total compensation out of all the companies we analyzed, while other remuneration made up 47% of the pie. There isn't a significant difference between Indutrade and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Indutrade AB (publ)'s Growth Numbers

Indutrade AB (publ) has seen its earnings per share (EPS) increase by 9.4% a year over the past three years. It achieved revenue growth of 2.2% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Indutrade AB (publ) Been A Good Investment?

Indutrade AB (publ) has served shareholders reasonably well, with a total return of 25% over three years. 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.

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

Whatever your view on compensation, you might want to check if insiders are buying or selling Indutrade shares (free trial).

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.