Shareholders Will Probably Hold Off On Increasing SkiStar AB (publ)'s (STO:SKIS B) CEO Compensation For The Time Being

CEO Stefan Sjostrand has done a decent job of delivering relatively good performance at SkiStar AB (publ) (STO:SKIS B) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 10 December 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out the opportunities and risks within the SE Hospitality industry.

How Does Total Compensation For Stefan Sjostrand Compare With Other Companies In The Industry?

At the time of writing, our data shows that SkiStar AB (publ) has a market capitalization of kr9.5b, and reported total annual CEO compensation of kr14m for the year to August 2022. We note that's an increase of 73% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at kr5.5m.

On comparing similar companies from the same industry with market caps ranging from kr4.2b to kr17b, we found that the median CEO total compensation was kr9.7m. This suggests that Stefan Sjostrand is paid more than the median for the industry. Moreover, Stefan Sjostrand also holds kr2.3m worth of SkiStar stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	kr5.5m	kr4.8m	40%
Other	kr8.4m	kr3.2m	60%
Total Compensation	kr14m	kr8.1m	100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. It's interesting to note that SkiStar allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

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

Over the past three years, SkiStar AB (publ) has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 47% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 SkiStar AB (publ) Been A Good Investment?

With a total shareholder return of 1.5% over three years, SkiStar AB (publ) has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which can't be ignored) in SkiStar we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.