The Compensation For Loomis AB (publ)'s (STO:LOOMIS) CEO Looks Deserved And Here's Why

Key Insights

• Loomis' Annual General Meeting to take place on 6th of May
• CEO Aritz Uribiarte's total compensation includes salary of kr14.0m
• The overall pay is comparable to the industry average
• Loomis' EPS grew by 18% over the past three years while total shareholder return over the past three years was 81%

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We have been pretty impressed with the performance at Loomis AB (publ) (STO:LOOMIS) recently and CEO Aritz Uribiarte deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 6th 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.

Check out our latest analysis for Loomis

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

At the time of writing, our data shows that Loomis AB (publ) has a market capitalization of kr27b, and reported total annual CEO compensation of kr33m for the year to December 2024. That's a notable decrease of 9.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at kr14m.

On examining similar-sized companies in the Swedish Commercial Services industry with market capitalizations between kr19b and kr62b, we discovered that the median CEO total compensation of that group was kr34m. From this we gather that Aritz Uribiarte is paid around the median for CEOs in the industry. Moreover, Aritz Uribiarte also holds kr17m worth of Loomis stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. In Loomis' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Loomis AB (publ)'s Growth

Loomis AB (publ) has seen its earnings per share (EPS) increase by 18% a year over the past three years. It achieved revenue growth of 6.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Loomis AB (publ) Been A Good Investment?

Boasting a total shareholder return of 81% over three years, Loomis AB (publ) has done well by shareholders. 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.

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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Loomis 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.