Is Nolato AB (publ)'s (STO:NOLA B) CEO Pay Justified?

In 2016 Christer Wahlquist was appointed CEO of Nolato AB (publ) (STO:NOLA B). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Nolato

How Does Christer Wahlquist's Compensation Compare With Similar Sized Companies?

According to our data, Nolato AB (publ) has a market capitalization of kr14b, and paid its CEO total annual compensation worth kr8.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr4.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of kr9.6b to kr31b. The median total CEO compensation was kr6.0m.

Thus we can conclude that Christer Wahlquist receives more in total compensation than the median of a group of companies in the same market, and of similar size to Nolato AB (publ). However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. It could be important to check this free visual depiction of what analysts expect for the future.

The graphic below shows how CEO compensation at Nolato has changed from year to year.

Is Nolato AB (publ) Growing?

Nolato AB (publ) has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 10%.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business.

Has Nolato AB (publ) Been A Good Investment?

Boasting a total shareholder return of 135% over three years, Nolato 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.

In Summary...

We compared total CEO remuneration at Nolato AB (publ) with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Nolato shares (free trial).

If you want to buy a stock that is better than Nolato, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.