We Think Some Shareholders May Hesitate To Increase Scandi Standard AB (publ)'s (STO:SCST) CEO Compensation

Key Insights

• Scandi Standard's Annual General Meeting to take place on 29th of April
• Total pay for CEO Jonas Tunestål includes kr5.57m salary
• Total compensation is 59% above industry average
• Scandi Standard's EPS grew by 38% over the past three years while total shareholder return over the past three years was 120%

Our free stock report includes 2 warning signs investors should be aware of before investing in Scandi Standard. Read for free now.

Under the guidance of CEO Jonas Tunestål, Scandi Standard AB (publ) (STO:SCST) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of April. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Scandi Standard

How Does Total Compensation For Jonas Tunestål Compare With Other Companies In The Industry?

Our data indicates that Scandi Standard AB (publ) has a market capitalization of kr5.3b, and total annual CEO compensation was reported as kr14m for the year to December 2024. That's a notable increase of 16% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr5.6m.

For comparison, other companies in the Swedish Food industry with market capitalizations ranging between kr1.9b and kr7.7b had a median total CEO compensation of kr8.8m. This suggests that Jonas Tunestål is paid more than the median for the industry. What's more, Jonas Tunestål holds kr7.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr5.6m	kr5.0m	40%
Other	kr8.5m	kr7.1m	60%
Total Compensation	kr14m	kr12m	100%

On an industry level, around 37% of total compensation represents salary and 63% is other remuneration. Scandi Standard is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Scandi Standard AB (publ)'s Growth

Over the past three years, Scandi Standard AB (publ) has seen its earnings per share (EPS) grow by 38% per year. In the last year, its revenue changed by just 0.08%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Scandi Standard AB (publ) Been A Good Investment?

Boasting a total shareholder return of 120% over three years, Scandi Standard 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.

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.

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 Scandi Standard that investors should think about before committing capital to this stock.

Important note: Scandi Standard 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. 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.