We Think Some Shareholders May Hesitate To Increase Trelleborg AB (publ)'s (STO:TREL B) CEO Compensation

Key Insights

• Trelleborg to hold its Annual General Meeting on 24th of April
• Salary of kr12.7m is part of CEO Peter Nilsson's total remuneration
• Total compensation is 80% above industry average
• Trelleborg's total shareholder return over the past three years was 85% while its EPS grew by 14% over the past three years

CEO Peter Nilsson has done a decent job of delivering relatively good performance at Trelleborg AB (publ) (STO:TREL B) recently. 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 24th of April. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Trelleborg

How Does Total Compensation For Peter Nilsson Compare With Other Companies In The Industry?

According to our data, Trelleborg AB (publ) has a market capitalization of kr92b, and paid its CEO total annual compensation worth kr46m over the year to December 2023. We note that's an increase of 39% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr13m.

On comparing similar companies from the Swedish Machinery industry with market caps ranging from kr44b to kr131b, we found that the median CEO total compensation was kr25m. Accordingly, our analysis reveals that Trelleborg AB (publ) pays Peter Nilsson north of the industry median. What's more, Peter Nilsson holds kr23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	kr13m	kr12m	28%
Other	kr33m	kr20m	72%
Total Compensation	kr46m	kr33m	100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. It's interesting to note that Trelleborg 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 Trelleborg AB (publ)'s Growth Numbers

Over the past three years, Trelleborg AB (publ) has seen its earnings per share (EPS) grow by 14% per year. It achieved revenue growth of 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Trelleborg AB (publ) Been A Good Investment?

Boasting a total shareholder return of 85% over three years, Trelleborg 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Trelleborg that investors should look into moving forward.

Important note: Trelleborg is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.