We Discuss Why Nordisk Bergteknik AB (publ)'s (STO:NORB B) CEO Compensation May Be Closely Reviewed

Key Insights

• Nordisk Bergteknik will host its Annual General Meeting on 15th of May
• Total pay for CEO Andreas Christoffersson includes kr3.10m salary
• The overall pay is comparable to the industry average
• Over the past three years, Nordisk Bergteknik's EPS fell by 32% and over the past three years, the total loss to shareholders 74%

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Shareholders will probably not be too impressed with the underwhelming results at Nordisk Bergteknik AB (publ) (STO:NORB B) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 15th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Nordisk Bergteknik

Comparing Nordisk Bergteknik AB (publ)'s CEO Compensation With The Industry

Our data indicates that Nordisk Bergteknik AB (publ) has a market capitalization of kr612m, and total annual CEO compensation was reported as kr4.2m for the year to December 2024. That's a slight decrease of 4.5% on the prior year. Notably, the salary which is kr3.10m, represents most of the total compensation being paid.

For comparison, other companies in the Swedish Construction industry with market capitalizations below kr1.9b, reported a median total CEO compensation of kr4.0m. So it looks like Nordisk Bergteknik compensates Andreas Christoffersson in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	kr3.1m	kr2.9m	74%
Other	kr1.1m	kr1.5m	26%
Total Compensation	kr4.2m	kr4.4m	100%

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. According to our research, Nordisk Bergteknik has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Nordisk Bergteknik AB (publ)'s Growth

Nordisk Bergteknik AB (publ) has reduced its earnings per share by 32% a year over the last three years. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Nordisk Bergteknik AB (publ) Been A Good Investment?

The return of -74% over three years would not have pleased Nordisk Bergteknik AB (publ) shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is concerning) in Nordisk Bergteknik we think you should know about.

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. 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.