Shareholders Will Likely Find Bravida Holding AB (publ)'s (STO:BRAV) CEO Compensation Acceptable

Key Insights

• Bravida Holding to hold its Annual General Meeting on 29th of April
• Total pay for CEO Mattias Johansson includes kr8.69m salary
• Total compensation is 33% below industry average
• Over the past three years, Bravida Holding's EPS fell by 3.0% and over the past three years, the total shareholder return was 3.4%

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The performance at Bravida Holding AB (publ) (STO:BRAV) has been rather lacklustre of late and shareholders may be wondering what CEO Mattias Johansson is planning to do about this. At the next AGM coming up on 29th of April, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Bravida Holding

Comparing Bravida Holding AB (publ)'s CEO Compensation With The Industry

At the time of writing, our data shows that Bravida Holding AB (publ) has a market capitalization of kr19b, and reported total annual CEO compensation of kr17m for the year to December 2024. We note that's a small decrease of 6.7% on last year. In particular, the salary of kr8.69m, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the Swedish Commercial Services industry with market caps ranging from kr9.6b to kr31b, we found that the median CEO total compensation was kr26m. This suggests that Mattias Johansson is paid below the industry median. Moreover, Mattias Johansson also holds kr70m worth of Bravida Holding stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	kr8.7m	kr8.2m	50%
Other	kr8.6m	kr10m	50%
Total Compensation	kr17m	kr19m	100%

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. Bravida Holding is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

A Look at Bravida Holding AB (publ)'s Growth Numbers

Bravida Holding AB (publ) has reduced its earnings per share by 3.0% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is not a very positive result for shareholders. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Bravida Holding AB (publ) Been A Good Investment?

Bravida Holding AB (publ) has not done too badly by shareholders, with a total return of 3.4%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Shareholder returns while positive, need to be looked at along with earnings, which have failed to grow and this could mean that the current momentum may not continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

So you may want to check if insiders are buying Bravida Holding shares with their own money (free access).

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.