Here's Why Some Shareholders May Not Be Too Generous With Nederman Holding AB (publ)'s (STO:NMAN) CEO Compensation This Year

Key Insights

• Nederman Holding will host its Annual General Meeting on 29th of April
• Total pay for CEO Sven Kristensson includes kr6.11m salary
• Total compensation is similar to the industry average
• Nederman Holding's total shareholder return over the past three years was 3.3% while its EPS grew by 4.2% over the past three years

We've discovered 1 warning sign about Nederman Holding. View them for free.

Performance at Nederman Holding AB (publ) (STO:NMAN) has been reasonably good and CEO Sven Kristensson 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 29th of April. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Nederman Holding

Comparing Nederman Holding AB (publ)'s CEO Compensation With The Industry

Our data indicates that Nederman Holding AB (publ) has a market capitalization of kr6.2b, and total annual CEO compensation was reported as kr13m for the year to December 2024. That's a notable increase of 20% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr6.1m.

In comparison with other companies in the Swedish Building industry with market capitalizations ranging from kr3.8b to kr15b, the reported median CEO total compensation was kr14m. This suggests that Nederman Holding remunerates its CEO largely in line with the industry average. Furthermore, Sven Kristensson directly owns kr60m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr6.1m	kr5.6m	47%
Other	kr7.0m	kr5.4m	53%
Total Compensation	kr13m	kr11m	100%

On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that Nederman Holding allocates a smaller portion of compensation to salary 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 Nederman Holding AB (publ)'s Growth Numbers

Nederman Holding AB (publ) has seen its earnings per share (EPS) increase by 4.2% a year over the past three years. It saw its revenue drop 4.7% over the last year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nederman Holding AB (publ) Been A Good Investment?

Nederman Holding AB (publ) has generated a total shareholder return of 3.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Nederman Holding that you should be aware of before investing.

Switching gears from Nederman Holding, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.