Katarina Sjogren became the CEO of Atvexa AB (publ) (STO:ATVEXA B) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Atvexa.
Check out our latest analysis for Atvexa
Comparing Atvexa AB (publ)'s CEO Compensation With the industry
According to our data, Atvexa AB (publ) has a market capitalization of kr1.0b, and paid its CEO total annual compensation worth kr2.2m over the year to August 2020. That is, the compensation was roughly the same as last year. In particular, the salary of kr1.49m, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below kr1.7b, we found that the median total CEO compensation was kr1.8m. This suggests that Atvexa remunerates its CEO largely in line with the industry average. Furthermore, Katarina Sjogren directly owns kr35m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | kr1.5m | kr1.5m | 68% |
| Other | kr690k | kr790k | 32% |
| Total Compensation | kr2.2m | kr2.2m | 100% |
On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. It's interesting to note that Atvexa pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Atvexa AB (publ)'s Growth Numbers
Atvexa AB (publ) has seen its earnings per share (EPS) increase by 5.8% a year over the past three years. Its revenue is up 19% over the last year.
We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Atvexa AB (publ) Been A Good Investment?
Boasting a total shareholder return of 45% over three years, Atvexa 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.
To Conclude...
As previously discussed, Katarina is compensated close to the median for companies of its size, and which belong to the same industry. But the company has been found wanting in terms of EPS growth over the past three years. At the same time, shareholder returns have remained strong over the same period. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Atvexa that investors should be aware of in a dynamic business environment.
Important note: Atvexa 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
About OM:ATVEXA B
Good value with proven track record.
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