Key Insights
- Munters Group to hold its Annual General Meeting on 14th of May
- CEO Klas Forsstrom's total compensation includes salary of kr8.77m
- The total compensation is similar to the average for the industry
- Munters Group's total shareholder return over the past three years was 127% while its EPS grew by 27% over the past three years
We have been pretty impressed with the performance at Munters Group AB (publ) (STO:MTRS) recently and CEO Klas Forsstrom deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 14th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for Munters Group
How Does Total Compensation For Klas Forsstrom Compare With Other Companies In The Industry?
According to our data, Munters Group AB (publ) has a market capitalization of kr23b, and paid its CEO total annual compensation worth kr29m over the year to December 2024. That's a notable increase of 50% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr8.8m.
In comparison with other companies in the Swedish Building industry with market capitalizations ranging from kr19b to kr62b, the reported median CEO total compensation was kr34m. From this we gather that Klas Forsstrom is paid around the median for CEOs in the industry. Moreover, Klas Forsstrom also holds kr23m worth of Munters Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | kr8.8m | kr8.1m | 30% |
| Other | kr21m | kr12m | 70% |
| Total Compensation | kr29m | kr20m | 100% |
Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. In Munters Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Munters Group AB (publ)'s Growth Numbers
Munters Group AB (publ) has seen its earnings per share (EPS) increase by 27% a year over the past three years. In the last year, its revenue is up 15%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Munters Group AB (publ) Been A Good Investment?
We think that the total shareholder return of 127%, over three years, would leave most Munters Group AB (publ) shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Munters Group that investors should be aware of in a dynamic business environment.
Switching gears from Munters 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.
Valuation is complex, but we're here to simplify it.
Discover if Munters Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.