How Is WeSC's (STO:WESC) CEO Paid Relative To Peers?

Joseph Janus is the CEO of WeSC AB (publ) (STO:WESC), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for WeSC

Comparing WeSC AB (publ)'s CEO Compensation With the industry

Our data indicates that WeSC AB (publ) has a market capitalization of kr26m, and total annual CEO compensation was reported as kr2.4m for the year to December 2019. That's a notable increase of 21% on last year. Notably, the salary of kr2.4m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below kr1.7b, reported a median total CEO compensation of kr1.8m. From this we gather that Joseph Janus is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 68% of total compensation represents salary, while the remainder of 32% is other remuneration. On a company level, WeSC prefers to reward its CEO through a salary, opting not to pay Joseph Janus through non-salary benefits. 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.

WeSC AB (publ)'s Growth

WeSC AB (publ)'s earnings per share (EPS) grew 128% per year over the last three years. It saw its revenue drop 51% over the last year.

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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has WeSC AB (publ) Been A Good Investment?

Given the total shareholder loss of 97% over three years, many shareholders in WeSC AB (publ) are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

WeSC pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, WeSC pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for WeSC (2 are potentially serious!) that you should be aware of before investing here.

Important note: WeSC is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. 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.
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