It Looks Like Getinge AB (publ)'s (STO:GETI B) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Getinge's Annual General Meeting to take place on 22nd of April
• CEO Mattias Perjos' total compensation includes salary of kr27.1m
• Total compensation is 98% above industry average
• Getinge's EPS declined by 18% over the past three years while total shareholder loss over the past three years was 41%

We've discovered 3 warning signs about Getinge. View them for free.

The results at Getinge AB (publ) (STO:GETI B) have been quite disappointing recently and CEO Mattias Perjos bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 22nd of April. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Getinge

How Does Total Compensation For Mattias Perjos Compare With Other Companies In The Industry?

At the time of writing, our data shows that Getinge AB (publ) has a market capitalization of kr54b, and reported total annual CEO compensation of kr60m for the year to December 2024. Notably, that's an increase of 29% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at kr27m.

On examining similar-sized companies in the Swedish Medical Equipment industry with market capitalizations between kr40b and kr119b, we discovered that the median CEO total compensation of that group was kr30m. Hence, we can conclude that Mattias Perjos is remunerated higher than the industry median. Furthermore, Mattias Perjos directly owns kr39m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr27m	kr26m	45%
Other	kr33m	kr20m	55%
Total Compensation	kr60m	kr46m	100%

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. It's interesting to note that Getinge allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Getinge AB (publ)'s Growth Numbers

Over the last three years, Getinge AB (publ) has shrunk its earnings per share by 18% per year. Its revenue is up 9.2% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Getinge AB (publ) Been A Good Investment?

The return of -41% over three years would not have pleased Getinge AB (publ) shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Getinge that you should be aware of before investing.

Switching gears from Getinge, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.