We Think Shareholders Will Probably Be Generous With Gränges AB (publ)'s (STO:GRNG) CEO Compensation

Key Insights

• Gränges will host its Annual General Meeting on 12th of May
• Salary of kr7.20m is part of CEO Jorgen Rosengren's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Gränges' EPS grew by 20% and over the past three years, the total shareholder return was 79%

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We have been pretty impressed with the performance at Gränges AB (publ) (STO:GRNG) recently and CEO Jorgen Rosengren deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 12th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Gränges

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

Our data indicates that Gränges AB (publ) has a market capitalization of kr13b, and total annual CEO compensation was reported as kr19m for the year to December 2024. That's a notable increase of 18% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr7.2m.

On examining similar-sized companies in the Swedish Metals and Mining industry with market capitalizations between kr9.7b and kr31b, we discovered that the median CEO total compensation of that group was kr18m. So it looks like Gränges compensates Jorgen Rosengren in line with the median for the industry. What's more, Jorgen Rosengren holds kr17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr7.2m	kr6.9m	39%
Other	kr11m	kr8.8m	61%
Total Compensation	kr19m	kr16m	100%

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. Gränges sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

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

Gränges AB (publ)'s earnings per share (EPS) grew 20% per year over the last three years. It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Gränges AB (publ) Been A Good Investment?

Most shareholders would probably be pleased with Gränges AB (publ) for providing a total return of 79% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Gränges we think you should know about.

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.