We Take A Look At Why AcadeMedia AB (publ)'s (STO:ACAD) CEO Has Earned Their Pay Packet

By
Simply Wall St
Published
November 23, 2021
OM:ACAD
Source: Shutterstock

It would be hard to discount the role that CEO Marcus Strömberg has played in delivering the impressive results at AcadeMedia AB (publ) (STO:ACAD) recently. Coming up to the next AGM on 30 November 2021, shareholders would be keeping this in mind. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for AcadeMedia

How Does Total Compensation For Marcus Strömberg Compare With Other Companies In The Industry?

At the time of writing, our data shows that AcadeMedia AB (publ) has a market capitalization of kr6.0b, and reported total annual CEO compensation of kr12m for the year to June 2021. That's a notable increase of 26% on last year. Notably, the salary which is kr6.11m, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from kr3.6b to kr14b, we found that the median CEO total compensation was kr14m. From this we gather that Marcus Strömberg is paid around the median for CEOs in the industry. What's more, Marcus Strömberg holds kr9.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20212020Proportion (2021)
Salary kr6.1m kr5.1m 52%
Other kr5.7m kr4.3m 48%
Total Compensationkr12m kr9.4m100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. In AcadeMedia's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. 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.

ceo-compensation
OM:ACAD CEO Compensation November 24th 2021

AcadeMedia AB (publ)'s Growth

Over the past three years, AcadeMedia AB (publ) has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 9.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 AcadeMedia AB (publ) Been A Good Investment?

We think that the total shareholder return of 34%, over three years, would leave most AcadeMedia AB (publ) shareholders smiling. 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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 2 warning signs for AcadeMedia that investors should look into moving forward.

Important note: AcadeMedia 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.