We Discuss Whether Indutrade AB (publ)'s (STO:INDT) CEO Is Due For A Pay Rise

Key Insights

• Indutrade to hold its Annual General Meeting on 9th of April
• Salary of kr12.0m is part of CEO Bo Annvik's total remuneration
• Total compensation is 33% below industry average
• Indutrade's total shareholder return over the past three years was 44% while its EPS grew by 20% over the past three years

The impressive results at Indutrade AB (publ) (STO:INDT) recently will be great news for shareholders. At the upcoming AGM on 9th of April, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Indutrade

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

At the time of writing, our data shows that Indutrade AB (publ) has a market capitalization of kr106b, and reported total annual CEO compensation of kr25m for the year to December 2023. Notably, that's an increase of 32% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at kr12m.

In comparison with other companies in the Swedish Machinery industry with market capitalizations over kr86b, the reported median total CEO compensation was kr37m. Accordingly, Indutrade pays its CEO under the industry median. Furthermore, Bo Annvik directly owns kr15m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	kr12m	kr10m	48%
Other	kr13m	kr9.0m	52%
Total Compensation	kr25m	kr19m	100%

Speaking on an industry level, nearly 49% of total compensation represents salary, while the remainder of 51% is other remuneration. Although there is a difference in how total compensation is set, Indutrade more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

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

Indutrade AB (publ) has seen its earnings per share (EPS) increase by 20% a year over the past three years. Its revenue is up 18% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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?

We think that the total shareholder return of 44%, over three years, would leave most Indutrade AB (publ) shareholders smiling. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Indutrade that investors should think about before committing capital to this stock.

Switching gears from Indutrade, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.