Ework Group AB (publ)'s (STO:EWRK) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Ework Group to hold its Annual General Meeting on 14th of May
• Salary of kr3.66m is part of CEO Karin Schreil's total remuneration
• Total compensation is similar to the industry average
• Ework Group's EPS grew by 12% over the past three years while total shareholder return over the past three years was 37%

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The performance at Ework Group AB (publ) (STO:EWRK) has been quite strong recently and CEO Karin Schreil has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 14th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Ework Group

Comparing Ework Group AB (publ)'s CEO Compensation With The Industry

At the time of writing, our data shows that Ework Group AB (publ) has a market capitalization of kr2.6b, and reported total annual CEO compensation of kr5.6m for the year to December 2024. Notably, that's an increase of 18% over the year before. In particular, the salary of kr3.66m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Swedish Professional Services industry with market capitalizations ranging between kr966m and kr3.9b had a median total CEO compensation of kr5.4m. So it looks like Ework Group compensates Karin Schreil in line with the median for the industry. Moreover, Karin Schreil also holds kr37m worth of Ework Group 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	kr3.7m	kr3.5m	65%
Other	kr2.0m	kr1.2m	35%
Total Compensation	kr5.6m	kr4.8m	100%

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. Although there is a difference in how total compensation is set, Ework Group more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Ework Group AB (publ)'s Growth

Ework Group AB (publ) has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is down 8.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Ework Group AB (publ) Been A Good Investment?

We think that the total shareholder return of 37%, over three years, would leave most Ework Group AB (publ) shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Ework Group that investors should look into moving forward.

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. 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.