We Discuss Why The CEO Of Sectra AB (publ) (STO:SECT B) Is Due For A Pay Rise

Simply Wall St

Key Insights

  • Sectra's Annual General Meeting to take place on 9th of September
  • Salary of kr5.24m is part of CEO Torbjörn Kronander's total remuneration
  • Total compensation is 95% below industry average
  • Sectra's EPS grew by 21% over the past three years while total shareholder return over the past three years was 146%

The impressive results at Sectra AB (publ) (STO:SECT B) recently will be great news for shareholders. At the upcoming AGM on 9th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Sectra

How Does Total Compensation For Torbjörn Kronander Compare With Other Companies In The Industry?

According to our data, Sectra AB (publ) has a market capitalization of kr63b, and paid its CEO total annual compensation worth kr7.6m over the year to April 2025. That's a notable decrease of 10% on last year. Notably, the salary which is kr5.24m, represents most of the total compensation being paid.

On comparing similar companies from the Swedish Healthcare Services industry with market caps ranging from kr38b to kr113b, we found that the median CEO total compensation was kr145m. That is to say, Torbjörn Kronander is paid under the industry median. What's more, Torbjörn Kronander holds kr4.2b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20252024Proportion (2025)
Salarykr5.2mkr5.3m69%
Otherkr2.4mkr3.2m31%
Total Compensationkr7.6m kr8.5m100%

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Our data reveals that Sectra allocates salary more or less in line with the wider market. 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.

OM:SECT B CEO Compensation September 3rd 2025

A Look at Sectra AB (publ)'s Growth Numbers

Sectra AB (publ)'s earnings per share (EPS) grew 21% per year over the last three years. Its revenue is up 9.2% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Sectra AB (publ) Been A Good Investment?

We think that the total shareholder return of 146%, over three years, would leave most Sectra AB (publ) shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

So you may want to check if insiders are buying Sectra shares with their own money (free access).

Switching gears from Sectra, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Valuation is complex, but we're here to simplify it.

Discover if Sectra might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.