It's Probably Less Likely That OrganoClick AB (publ)'s (STO:ORGC) CEO Will See A Huge Pay Rise This Year

Key Insights

• OrganoClick to hold its Annual General Meeting on 20th of May
• Total pay for CEO Marten Hellberg includes kr1.49m salary
• The total compensation is similar to the average for the industry
• Over the past three years, OrganoClick's EPS grew by 31% and over the past three years, the total loss to shareholders 54%

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Shareholders of OrganoClick AB (publ) (STO:ORGC) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 20th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for OrganoClick

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

Our data indicates that OrganoClick AB (publ) has a market capitalization of kr201m, and total annual CEO compensation was reported as kr1.8m for the year to December 2024. That's a modest increase of 3.2% on the prior year. In particular, the salary of kr1.49m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Swedish Chemicals industry with market capitalizations below kr1.9b, reported a median total CEO compensation of kr2.0m. This suggests that OrganoClick remunerates its CEO largely in line with the industry average. What's more, Marten Hellberg holds kr16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. OrganoClick is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

Over the past three years, OrganoClick AB (publ) has seen its earnings per share (EPS) grow by 31% per year. Its revenue is down 11% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has OrganoClick AB (publ) Been A Good Investment?

The return of -54% over three years would not have pleased OrganoClick AB (publ) shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for OrganoClick (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.