The CEO Of Nordnet AB (publ) (STO:SAVE) Might See A Pay Rise On The Horizon

Key Insights

• Nordnet will host its Annual General Meeting on 29th of April
• Salary of kr7.80m is part of CEO Lars-Ake Norling's total remuneration
• The overall pay is 43% below the industry average
• Nordnet's EPS grew by 29% over the past three years while total shareholder return over the past three years was 18%

Shareholders will probably not be disappointed by the robust results at Nordnet AB (publ) (STO:SAVE) recently and they will be keeping this in mind as they go into the AGM on 29th of April. 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.

Check out our latest analysis for Nordnet

Comparing Nordnet AB (publ)'s CEO Compensation With The Industry

At the time of writing, our data shows that Nordnet AB (publ) has a market capitalization of kr45b, and reported total annual CEO compensation of kr11m for the year to December 2023. That's just a smallish increase of 7.1% on last year. Notably, the salary which is kr7.80m, represents most of the total compensation being paid.

On comparing similar companies from the Swedish Capital Markets industry with market caps ranging from kr22b to kr70b, we found that the median CEO total compensation was kr19m. In other words, Nordnet pays its CEO lower than the industry median.

Component	2023	2022	Proportion (2023)
Salary	kr7.8m	kr7.3m	74%
Other	kr2.8m	kr2.6m	26%
Total Compensation	kr11m	kr9.9m	100%

Talking in terms of the industry, salary represented approximately 73% of total compensation out of all the companies we analyzed, while other remuneration made up 27% of the pie. Although there is a difference in how total compensation is set, Nordnet more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Nordnet AB (publ)'s Growth

Nordnet AB (publ)'s earnings per share (EPS) grew 29% per year over the last three years. It achieved revenue growth of 26% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Nordnet AB (publ) Been A Good Investment?

With a total shareholder return of 18% over three years, Nordnet AB (publ) shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Nordnet (2 are a bit concerning!) that you should be aware of before investing here.

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.