Shareholders May Be A Bit More Conservative With Qlife Holding AB (publ)'s (STO:QLIFE) CEO Compensation For Now

Key Insights

• Qlife Holding's Annual General Meeting to take place on 26th of June
• Total pay for CEO Thomas Warthoe includes kr1.86m salary
• The overall pay is comparable to the industry average
• Qlife Holding's EPS grew by 23% over the past three years while total shareholder loss over the past three years was 100%

Shareholders of Qlife Holding AB (publ) (STO:QLIFE) 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. These are some of the concerns that shareholders may want to bring up at the next AGM held on 26th of June. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Qlife Holding

How Does Total Compensation For Thomas Warthoe Compare With Other Companies In The Industry?

Our data indicates that Qlife Holding AB (publ) has a market capitalization of kr7.3m, and total annual CEO compensation was reported as kr1.9m for the year to December 2023. That's a notable increase of 14% on last year. We note that the salary portion, which stands at kr1.86m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Swedish Medical Equipment industry with market capitalizations below kr2.1b, reported a median total CEO compensation of kr2.6m. This suggests that Qlife Holding remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	kr1.9m	kr1.7m	99%
Other	kr21k	-	1%
Total Compensation	kr1.9m	kr1.7m	100%

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. Investors will find it interesting that Qlife Holding pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Qlife Holding AB (publ)'s Growth

Qlife Holding AB (publ)'s earnings per share (EPS) grew 23% per year over the last three years. It saw its revenue drop 98% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Qlife Holding AB (publ) Been A Good Investment?

The return of -100% over three years would not have pleased Qlife Holding AB (publ) shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Qlife Holding pays its CEO a majority of compensation through a salary. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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 compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 7 warning signs for Qlife Holding that you should be aware of before investing.

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.

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