How Much Is Glycorex Transplantation's (NGM:GTAB B) CEO Getting Paid?

This article will reflect on the compensation paid to Johan Nilsson who has served as CEO of Glycorex Transplantation AB (publ) (NGM:GTAB B) since 2013. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Glycorex Transplantation

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

Our data indicates that Glycorex Transplantation AB (publ) has a market capitalization of kr883m, and total annual CEO compensation was reported as kr909k for the year to December 2019. That's a notable increase of 9.0% on last year. We note that the salary portion, which stands at kr832.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under kr1.7b, the reported median total CEO compensation was kr1.7m. Accordingly, Glycorex Transplantation pays its CEO under the industry median.

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. It's interesting to note that Glycorex Transplantation pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Glycorex Transplantation AB (publ)'s Growth Numbers

Glycorex Transplantation AB (publ)'s earnings per share (EPS) grew 68% per year over the last three years. Its revenue is down 27% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Glycorex Transplantation AB (publ) Been A Good Investment?

Most shareholders would probably be pleased with Glycorex Transplantation AB (publ) for providing a total return of 401% over three years. 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...

As we touched on above, Glycorex Transplantation AB (publ) is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. 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!

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Glycorex Transplantation that investors should look into moving forward.

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. 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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