It May Be Possible That New Wave Group AB (publ)'s (STO:NEWA B) CEO Compensation Could Get Bumped Up
Key Insights
- New Wave Group's Annual General Meeting to take place on 6th of May
- CEO Torsten Jansson's total compensation includes salary of kr900.0k
- The total compensation is 77% less than the average for the industry
- New Wave Group's total shareholder return over the past three years was 55% while its EPS grew by 2.2% over the past three years
The decent performance at New Wave Group AB (publ) (STO:NEWA B) recently will please most shareholders as they go into the AGM coming up on 6th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
See our latest analysis for New Wave Group
How Does Total Compensation For Torsten Jansson Compare With Other Companies In The Industry?
At the time of writing, our data shows that New Wave Group AB (publ) has a market capitalization of kr15b, and reported total annual CEO compensation of kr1.1m for the year to December 2024. There was no change in the compensation compared to last year. We note that the salary portion, which stands at kr900.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the Sweden Luxury industry with market capitalizations ranging from kr9.6b to kr31b, the reported median CEO total compensation was kr4.9m. This suggests that Torsten Jansson is paid below the industry median. Furthermore, Torsten Jansson directly owns kr5.2b worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | kr900k | kr900k | 82% |
| Other | kr200k | kr200k | 18% |
| Total Compensation | kr1.1m | kr1.1m | 100% |
Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. Although there is a difference in how total compensation is set, New Wave Group more or less reflects the market in terms of setting the salary. 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 New Wave Group AB (publ)'s Growth Numbers
Over the past three years, New Wave Group AB (publ) has seen its earnings per share (EPS) grow by 2.2% per year. Its revenue is up 3.7% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has New Wave Group AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with New Wave Group AB (publ) for providing a total return of 55% over three years. 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...
The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term 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 New Wave Group that investors should think about before committing capital to this stock.
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.