Increases to OssDsign AB (publ)'s (STO:OSSD) CEO Compensation Might Cool off for now

Key Insights

• OssDsign's Annual General Meeting to take place on 25th of June
• CEO Morten Henneveld's total compensation includes salary of kr4.29m
• Total compensation is 207% above industry average
• Over the past three years, OssDsign's EPS grew by 34% and over the past three years, the total shareholder return was 8.4%

Performance at OssDsign AB (publ) (STO:OSSD) has been reasonably good and CEO Morten Henneveld has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 25th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for OssDsign

Comparing OssDsign AB (publ)'s CEO Compensation With The Industry

At the time of writing, our data shows that OssDsign AB (publ) has a market capitalization of kr859m, and reported total annual CEO compensation of kr7.9m for the year to December 2023. Notably, that's an increase of 24% over the year before. Notably, the salary which is kr4.29m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Swedish Medical Equipment industry with market capitalizations below kr2.1b, reported a median total CEO compensation of kr2.6m. Accordingly, our analysis reveals that OssDsign AB (publ) pays Morten Henneveld north of the industry median. What's more, Morten Henneveld holds kr1.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	kr4.3m	kr3.9m	54%
Other	kr3.6m	kr2.5m	46%
Total Compensation	kr7.9m	kr6.4m	100%

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. In OssDsign's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

OssDsign AB (publ)'s Growth

OssDsign AB (publ)'s earnings per share (EPS) grew 34% per year over the last three years. In the last year, its revenue is up 65%.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has OssDsign AB (publ) Been A Good Investment?

OssDsign AB (publ) has generated a total shareholder return of 8.4% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for OssDsign that investors should be aware of in a dynamic business environment.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com