Stefan Arvidsson became the CEO of TiksPac AB (publ) (NGM:TIKS) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Stefan Arvidsson’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that TiksPac AB (publ) has a market cap of kr40m, and reported total annual CEO compensation of kr945k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth kr1.2m. We took a group of companies with market capitalizations below kr1.9b, and calculated the median CEO total compensation to be kr2.0m.
A first glance this seems like a real positive for shareholders, since Stefan Arvidsson is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at TiksPac has changed from year to year.
Is TiksPac AB (publ) Growing?
On average over the last three years, TiksPac AB (publ) has grown earnings per share (EPS) by 37% each year (using a line of best fit). In the last year, its revenue is down 2.4%.
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. Although we don’t have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has TiksPac AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with TiksPac AB (publ) for providing a total return of 80% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
TiksPac AB (publ) is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Stefan Arvidsson deserves a raise! It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. So you may want to check if insiders are buying TiksPac shares with their own money (free access).
Important note: TiksPac may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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