How Much Is Swedish Stirling AB (publ) (STO:STRLNG) CEO Getting Paid?

Gunnar Larsson became the CEO of Swedish Stirling AB (publ) (STO:STRLNG) in 2009, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Swedish Stirling pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Swedish Stirling

Comparing Swedish Stirling AB (publ)'s CEO Compensation With the industry

Our data indicates that Swedish Stirling AB (publ) has a market capitalization of kr1.3b, and total annual CEO compensation was reported as kr1.7m for the year to December 2019. We note that's an increase of 9.2% above last year. Notably, the salary which is kr1.22m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between kr829m and kr3.3b had a median total CEO compensation of kr1.7m. So it looks like Swedish Stirling compensates Gunnar Larsson in line with the median for the industry. Furthermore, Gunnar Larsson directly owns kr27m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. Our data reveals that Swedish Stirling allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Swedish Stirling AB (publ)'s Growth

Over the last three years, Swedish Stirling AB (publ) has shrunk its earnings per share by 89% per year. Its revenue is up 18% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Swedish Stirling AB (publ) Been A Good Investment?

Boasting a total shareholder return of 46% over three years, Swedish Stirling AB (publ) has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As previously discussed, Gunnar is compensated close to the median for companies of its size, and which belong to the same industry. Shareholder returns for the company have been strong for the last three years. At the same time, revenues are also moving northwards at a healthy pace. On a worrying note, its important to acknowledge that EPS growth has been negative recently. Overall, the company's performance hasn't been that disappointing for us to object the CEO compensation.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Swedish Stirling (2 are concerning!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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. 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.
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