How Much Does Nanexa's (STO:NANEXA) CEO Make?

David Westberg became the CEO of Nanexa AB (STO:NANEXA) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. 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 Nanexa

How Does Total Compensation For David Westberg Compare With Other Companies In The Industry?

At the time of writing, our data shows that Nanexa AB has a market capitalization of kr304m, and reported total annual CEO compensation of kr1.9m for the year to December 2019. We note that's an increase of 8.6% above last year. Notably, the salary which is kr1.21m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under kr1.7b, the reported median total CEO compensation was kr1.7m. This suggests that Nanexa remunerates its CEO largely in line with the industry average. Moreover, David Westberg also holds kr604k worth of Nanexa stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. Nanexa pays a modest slice of remuneration through salary, as compared to the broader 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 Nanexa AB's Growth Numbers

Nanexa AB saw earnings per share stay pretty flat over the last three years. In the last year, its revenue is up 141%.

We like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Nanexa AB Been A Good Investment?

Boasting a total shareholder return of 134% over three years, Nanexa AB has done well by shareholders. 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...

As we noted earlier, Nanexa pays its CEO in line with similar-sized companies belonging to the same industry. But the company has been found wanting in terms of EPS growth over the past three years. On the other hand, shareholder returns over the same period have been very healthy. So while shareholders shouldn't be overly concerned about CEO compensation, we suspect most would prefer to see improved performance, before a bump in pay.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 6 warning signs (and 2 which are concerning) in Nanexa we think you should know about.

Important note: Nanexa 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. 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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