Shareholders May Be Wary Of Increasing Bonava AB (publ)'s (STO:BONAV B) CEO Compensation Package

Key Insights

• Bonava's Annual General Meeting to take place on 9th of April
• Salary of kr8.44m is part of CEO Peter Wallin's total remuneration
• The total compensation is 102% higher than the average for the industry
• Bonava's EPS declined by 89% over the past three years while total shareholder loss over the past three years was 70%

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Shareholders will probably not be too impressed with the underwhelming results at Bonava AB (publ) (STO:BONAV B) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 9th of April. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Bonava

How Does Total Compensation For Peter Wallin Compare With Other Companies In The Industry?

According to our data, Bonava AB (publ) has a market capitalization of kr2.8b, and paid its CEO total annual compensation worth kr14m over the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is kr8.44m, represents most of the total compensation being paid.

On comparing similar companies from the Swedish Consumer Durables industry with market caps ranging from kr991m to kr4.0b, we found that the median CEO total compensation was kr6.8m. This suggests that Peter Wallin is paid more than the median for the industry. What's more, Peter Wallin holds kr2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Bonava is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Bonava AB (publ)'s Growth Numbers

Over the last three years, Bonava AB (publ) has shrunk its earnings per share by 89% per year. In the last year, its revenue is down 38%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Bonava AB (publ) Been A Good Investment?

The return of -70% over three years would not have pleased Bonava AB (publ) shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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. We did our research and spotted 1 warning sign for Bonava that investors should look into moving forward.

Switching gears from Bonava, 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.