Simon Grant became the CEO of SciBase Holding AB (publ) (STO:SCIB) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Simon Grant’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that SciBase Holding AB (publ) has a market cap of kr60m, and is paying total annual CEO compensation of kr2m. We note that’s an increase of 13% above last year. We looked at a group of companies with market capitalizations under kr1.8b, and the median CEO compensation was kr2m.
As you can see, Simon Grant is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean SciBase Holding AB (publ) is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at SciBase Holding, below.
Is SciBase Holding AB (publ) Growing?
On average over the last three years, SciBase Holding AB (publ) has grown earnings per share (EPS) by 16% each year. Its revenue is down -10% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has SciBase Holding AB (publ) Been A Good Investment?
Since shareholders would have lost about 88% over three years, some SciBase Holding AB (publ) shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We examined the amount SciBase Holding AB (publ) pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. So shareholders might not feel great about the fact that CEO pay increased on last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling SciBase Holding AB (publ) shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.