Ole Thastrup is the CEO of 2cureX AB (publ) (STO:2CUREX), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for 2cureX.
See our latest analysis for 2cureX
How Does Total Compensation For Ole Thastrup Compare With Other Companies In The Industry?
According to our data, 2cureX AB (publ) has a market capitalization of kr202m, and paid its CEO total annual compensation worth kr1.6m over the year to December 2019. That's just a smallish increase of 3.1% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth kr1.6m.
In comparison with other companies in the industry with market capitalizations under kr1.7b, the reported median total CEO compensation was kr1.7m. From this we gather that Ole Thastrup is paid around the median for CEOs in the industry. What's more, Ole Thastrup holds kr62m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | kr1.6m | kr1.6m | 100% |
| Other | - | - | - |
| Total Compensation | kr1.6m | kr1.6m | 100% |
On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. On a company level, 2cureX prefers to reward its CEO through a salary, opting not to pay Ole Thastrup through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
2cureX AB (publ)'s Growth
2cureX AB (publ) has reduced its earnings per share by 5.0% a year over the last three years. Its revenue is up 43% over the last year.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has 2cureX AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with 2cureX AB (publ) for providing a total return of 124% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
2cureX pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, 2cureX pays its CEO in line with similar-sized companies belonging to the same industry. Investors will be happy that 2cureX has produced strong shareholder returns for the past three years. Meanwhile, revenues have been increasing recently However, on a concerning note, EPS is not growing. Overall, the company's performance hasn't been that disappointing for us to object the CEO compensation.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which shouldn't be ignored) in 2cureX we think you should know about.
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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About OM:2CUREX
Moderate with adequate balance sheet.
