Shareholders May Be A Bit More Conservative With Green Landscaping Group AB (publ)'s (STO:GREEN) CEO Compensation For Now

Key Insights

• Green Landscaping Group will host its Annual General Meeting on 9th of May
• Salary of kr4.10m is part of CEO Johan Nordstrom's total remuneration
• Total compensation is similar to the industry average
• Green Landscaping Group's three-year loss to shareholders was 16% while its EPS grew by 7.9% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Green Landscaping Group. Read for free now.

Shareholders of Green Landscaping Group AB (publ) (STO:GREEN) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 9th of May. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Green Landscaping Group

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

According to our data, Green Landscaping Group AB (publ) has a market capitalization of kr3.5b, and paid its CEO total annual compensation worth kr6.8m over the year to December 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at kr4.10m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Swedish Commercial Services industry with market caps ranging from kr1.9b to kr7.7b, we found that the median CEO total compensation was kr6.5m. This suggests that Green Landscaping Group remunerates its CEO largely in line with the industry average. What's more, Johan Nordstrom holds kr217m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. Green Landscaping Group pays out 60% 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.

Green Landscaping Group AB (publ)'s Growth

Over the past three years, Green Landscaping Group AB (publ) has seen its earnings per share (EPS) grow by 7.9% per year. Its revenue is up 3.8% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Green Landscaping Group AB (publ) Been A Good Investment?

Given the total shareholder loss of 16% over three years, many shareholders in Green Landscaping Group AB (publ) are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Green Landscaping Group that investors should think about before committing capital to this stock.

Switching gears from Green Landscaping Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.