What Can We Conclude About Seafire's (STO:SEAF) CEO Pay?

This article will reflect on the compensation paid to Johan Bennarsten who has served as CEO of Seafire AB (publ) (STO:SEAF) since 2016. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Seafire

How Does Total Compensation For Johan Bennarsten Compare With Other Companies In The Industry?

According to our data, Seafire AB (publ) has a market capitalization of kr139m, and paid its CEO total annual compensation worth kr933k over the year to December 2019. That's a notable increase of 37% on last year. We note that the salary portion, which stands at kr906.0k constitutes the majority of total compensation received by 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 kr1.9m. In other words, Seafire pays its CEO lower than the industry median.

On an industry level, around 97% of total compensation represents salary and 2.9% is other remuneration. Seafire pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

Seafire AB (publ) has seen its earnings per share (EPS) increase by 20% a year over the past three years. Its revenue is up 35% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 Seafire AB (publ) Been A Good Investment?

We think that the total shareholder return of 88%, over three years, would leave most Seafire 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...

Johan receives almost all of their compensation through a salary. As previously discussed, Johan is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Considering robust EPS growth, we believe Johan to be modestly paid. And given most shareholders are probably very happy with recent shareholder returns, they might even think Johan deserves a raise!

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Seafire that you should be aware of before investing.

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. 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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