It Looks Like Shareholders Would Probably Approve Momentum Group AB (publ)'s (STO:MMGR B) CEO Compensation Package

Key Insights

• Momentum Group to hold its Annual General Meeting on 7th of May
• CEO Ulf Lilius' total compensation includes salary of kr5.51m
• The overall pay is comparable to the industry average
• Momentum Group's total shareholder return over the past three years was 137% while its EPS grew by 16% over the past three years

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The performance at Momentum Group AB (publ) (STO:MMGR B) has been quite strong recently and CEO Ulf Lilius has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 7th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Momentum Group

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

At the time of writing, our data shows that Momentum Group AB (publ) has a market capitalization of kr7.9b, and reported total annual CEO compensation of kr9.5m for the year to December 2024. That's just a smallish increase of 6.4% on last year. In particular, the salary of kr5.51m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Swedish Trade Distributors industry with market capitalizations ranging between kr3.9b and kr15b had a median total CEO compensation of kr9.6m. So it looks like Momentum Group compensates Ulf Lilius in line with the median for the industry. Furthermore, Ulf Lilius directly owns kr34m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. There isn't a significant difference between Momentum Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Momentum Group AB (publ)'s Growth Numbers

Momentum Group AB (publ)'s earnings per share (EPS) grew 16% per year over the last three years. In the last year, its revenue is up 20%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Momentum Group AB (publ) Been A Good Investment?

Boasting a total shareholder return of 137% over three years, Momentum Group AB (publ) has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

Shareholders may want to check for free if Momentum Group insiders are buying or selling shares.

Switching gears from Momentum Group, 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.