Shareholders Will Probably Not Have Any Issues With Invisio AB (publ)'s (STO:IVSO) CEO Compensation

Key Insights

• Invisio's Annual General Meeting to take place on 7th of May
• CEO Lars Hansen's total compensation includes salary of kr3.20m
• The total compensation is similar to the average for the industry
• Invisio's EPS grew by 42% over the past three years while total shareholder return over the past three years was 28%

Performance at Invisio AB (publ) (STO:IVSO) has been reasonably good and CEO Lars Hansen 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 7th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Invisio

How Does Total Compensation For Lars Hansen Compare With Other Companies In The Industry?

At the time of writing, our data shows that Invisio AB (publ) has a market capitalization of kr11b, and reported total annual CEO compensation of kr10m for the year to December 2023. We note that's an increase of 28% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at kr3.2m.

For comparison, other companies in the Swedish Aerospace & Defense industry with market capitalizations ranging between kr4.4b and kr18b had a median total CEO compensation of kr10m. This suggests that Invisio remunerates its CEO largely in line with the industry average. What's more, Lars Hansen holds kr105m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	kr3.2m	kr3.2m	31%
Other	kr7.2m	kr4.9m	69%
Total Compensation	kr10m	kr8.1m	100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. Invisio sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Invisio AB (publ)'s Growth

Invisio AB (publ) has seen its earnings per share (EPS) increase by 42% a year over the past three years. Its revenue is up 60% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Invisio AB (publ) Been A Good Investment?

Invisio AB (publ) has served shareholders reasonably well, with a total return of 28% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

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 Invisio that you should be aware of before investing.

Switching gears from Invisio, 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.

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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.