Shareholders May Be A Bit More Conservative With Bong AB (publ)'s (STO:BONG) CEO Compensation For Now

Key Insights

• Bong will host its Annual General Meeting on 15th of May
• CEO Kai Steigleder's total compensation includes salary of kr4.22m
• The overall pay is comparable to the industry average
• Over the past three years, Bong's EPS grew by 101% and over the past three years, the total loss to shareholders 16%

Shareholders of Bong AB (publ) (STO:BONG) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 15th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Bong

How Does Total Compensation For Kai Steigleder Compare With Other Companies In The Industry?

Our data indicates that Bong AB (publ) has a market capitalization of kr177m, and total annual CEO compensation was reported as kr4.8m for the year to December 2023. That's a notable increase of 12% on last year. Notably, the salary which is kr4.22m, represents most of the total compensation being paid.

In comparison with other companies in the Swedish Commercial Services industry with market capitalizations under kr2.2b, the reported median total CEO compensation was kr3.9m. From this we gather that Kai Steigleder is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	kr4.2m	kr3.7m	87%
Other	kr622k	kr597k	13%
Total Compensation	kr4.8m	kr4.3m	100%

On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. Bong pays out 87% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Bong AB (publ)'s Growth

Over the past three years, Bong AB (publ) has seen its earnings per share (EPS) grow by 101% per year. In the last year, its revenue is down 3.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bong AB (publ) Been A Good Investment?

Given the total shareholder loss of 16% over three years, many shareholders in Bong AB (publ) are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Bong that investors should be aware of in a dynamic business environment.

Important note: Bong 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.

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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.