Shareholders May Not Be So Generous With Episurf Medical AB (publ)'s (STO:EPIS B) CEO Compensation And Here's Why

Key Insights

• Episurf Medical to hold its Annual General Meeting on 10th of April
• CEO Pal Ryfors' total compensation includes salary of kr3.90m
• The overall pay is 140% above the industry average
• Episurf Medical's EPS grew by 7.3% over the past three years while total shareholder loss over the past three years was 96%

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Shareholders of Episurf Medical AB (publ) (STO:EPIS B) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 10th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Episurf Medical

How Does Total Compensation For Pal Ryfors Compare With Other Companies In The Industry?

Our data indicates that Episurf Medical AB (publ) has a market capitalization of kr79m, and total annual CEO compensation was reported as kr4.8m for the year to December 2024. That's a fairly small increase of 6.7% over the previous year. We note that the salary portion, which stands at kr3.90m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Swedish Medical Equipment industry with market capitalizations below kr2.0b, reported a median total CEO compensation of kr2.0m. Accordingly, our analysis reveals that Episurf Medical AB (publ) pays Pal Ryfors north of the industry median. What's more, Pal Ryfors holds kr2.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. Episurf Medical is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Episurf Medical AB (publ)'s Growth Numbers

Over the past three years, Episurf Medical AB (publ) has seen its earnings per share (EPS) grow by 7.3% per year. In the last year, its revenue is up 4.0%.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Episurf Medical AB (publ) Been A Good Investment?

The return of -96% over three years would not have pleased Episurf Medical AB (publ) shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 5 warning signs for Episurf Medical you should be aware of, and 3 of them shouldn't be ignored.

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. 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.