Is Mackmyra Svensk Whisky AB (publ)’s (STO:MACK B) CEO Pay Justified?

The CEO of Mackmyra Svensk Whisky AB (publ) (STO:MACK B) is Magnus Dandanell. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

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View our latest analysis for Mackmyra Svensk Whisky

How Does Magnus Dandanell’s Compensation Compare With Similar Sized Companies?

According to our data, Mackmyra Svensk Whisky AB (publ) has a market capitalization of kr152m, and pays its CEO total annual compensation worth kr1.5m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at kr1.1m. We took a group of companies with market capitalizations below kr1.9b, and calculated the median CEO total compensation to be kr1.7m.

So Magnus Dandanell is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Mackmyra Svensk Whisky, below.

OM:MACK B CEO Compensation, May 15th 2019
OM:MACK B CEO Compensation, May 15th 2019

Is Mackmyra Svensk Whisky AB (publ) Growing?

Over the last three years Mackmyra Svensk Whisky AB (publ) has grown its earnings per share (EPS) by an average of 46% per year (using a line of best fit). Its revenue is up 6.6% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Mackmyra Svensk Whisky AB (publ) Been A Good Investment?

With a total shareholder return of 11% over three years, Mackmyra Svensk Whisky 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…

Magnus Dandanell is paid around the same as most CEOs of similar size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Mackmyra Svensk Whisky insiders are buying or selling shares.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.