Here's Why Lindab International AB (publ)'s (STO:LIAB) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Lindab International's Annual General Meeting to take place on 13th of May
• Salary of kr7.86m is part of CEO Ola Ringdahl's total remuneration
• Total compensation is 30% below industry average
• Over the past three years, Lindab International's EPS fell by 31% and over the past three years, the total shareholder return was 24%

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Performance at Lindab International AB (publ) (STO:LIAB) has been rather uninspiring recently and shareholders may be wondering how CEO Ola Ringdahl plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 13th of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Lindab International

How Does Total Compensation For Ola Ringdahl Compare With Other Companies In The Industry?

Our data indicates that Lindab International AB (publ) has a market capitalization of kr16b, and total annual CEO compensation was reported as kr12m for the year to December 2024. That's a notable increase of 21% on last year. In particular, the salary of kr7.86m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Swedish Building industry with market capitalizations ranging between kr9.6b and kr31b had a median total CEO compensation of kr18m. That is to say, Ola Ringdahl is paid under the industry median. What's more, Ola Ringdahl holds kr28m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr7.9m	kr6.8m	63%
Other	kr4.6m	kr3.5m	37%
Total Compensation	kr12m	kr10m	100%

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. Lindab International is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Lindab International AB (publ)'s Growth Numbers

Lindab International AB (publ) has reduced its earnings per share by 31% a year over the last three years. Its revenue is up 1.6% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Lindab International AB (publ) Been A Good Investment?

Lindab International AB (publ) has served shareholders reasonably well, with a total return of 24% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 3 warning signs for Lindab International that investors should look into moving forward.

Switching gears from Lindab International, 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.