Our View On Minesto's (STO:MINEST) CEO Pay

Martin Edlund has been the CEO of Minesto AB (publ) (STO:MINEST) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Minesto.

Check out our latest analysis for Minesto

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

At the time of writing, our data shows that Minesto AB (publ) has a market capitalization of kr3.2b, and reported total annual CEO compensation of kr1.6m for the year to December 2019. That's a modest increase of 4.5% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth kr1.6m.

On examining similar-sized companies in the industry with market capitalizations between kr1.7b and kr6.6b, we discovered that the median CEO total compensation of that group was kr2.7m. In other words, Minesto pays its CEO lower than the industry median.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. At the company level, Minesto pays Martin Edlund solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

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

Minesto AB (publ) has reduced its earnings per share by 87% a year over the last three years. Its revenue is up 6.5% over the last year.

Overall this is not a very positive result for shareholders. 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Minesto AB (publ) Been A Good Investment?

Most shareholders would probably be pleased with Minesto AB (publ) for providing a total return of 606% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Minesto pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Minesto 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. And while EPS growth is negative, shareholder returns have been healthy recently. So, while it would be nice to have better EPS growth, our analysis suggests CEO compensation is quite modest.

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've identified 4 warning signs for Minesto that investors should be aware of in a dynamic business environment.

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. 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.
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