This Is Why ScandiDos AB (publ)'s (STO:SDOS) CEO Compensation Looks Appropriate

Key Insights

• ScandiDos to hold its Annual General Meeting on 23rd of October
• Salary of kr1.39m is part of CEO Carl Piehl's total remuneration
• The overall pay is 46% below the industry average
• Over the past three years, ScandiDos' EPS grew by 43% and over the past three years, the total loss to shareholders 45%

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Shareholders may be wondering what CEO Carl Piehl plans to do to improve the less than great performance at ScandiDos AB (publ) (STO:SDOS) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 23rd of October. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for ScandiDos

How Does Total Compensation For Carl Piehl Compare With Other Companies In The Industry?

According to our data, ScandiDos AB (publ) has a market capitalization of kr64m, and paid its CEO total annual compensation worth kr1.8m over the year to April 2025. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at kr1.39m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Swedish Medical Equipment industry with market capitalizations under kr1.9b, the reported median total CEO compensation was kr3.3m. In other words, ScandiDos pays its CEO lower than the industry median.

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Although there is a difference in how total compensation is set, ScandiDos more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ScandiDos AB (publ)'s Growth

ScandiDos AB (publ)'s earnings per share (EPS) grew 43% per year over the last three years. It saw its revenue drop 2.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 ScandiDos AB (publ) Been A Good Investment?

Few ScandiDos AB (publ) shareholders would feel satisfied with the return of -45% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for ScandiDos that you should be aware of before investing.

Important note: ScandiDos 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. 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.