Increases to Polygiene Group AB's (STO:POLYG) CEO Compensation Might Cool off for now

Key Insights

• Polygiene Group's Annual General Meeting to take place on 8th of May
• Salary of kr2.16m is part of CEO Ulrika Bjork's total remuneration
• The total compensation is 42% higher than the average for the industry
• Polygiene Group's EPS declined by 78% over the past three years while total shareholder loss over the past three years was 31%

Our free stock report includes 2 warning signs investors should be aware of before investing in Polygiene Group. Read for free now.

In the past three years, the share price of Polygiene Group AB (STO:POLYG) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 8th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

Check out our latest analysis for Polygiene Group

Comparing Polygiene Group AB's CEO Compensation With The Industry

According to our data, Polygiene Group AB has a market capitalization of kr336m, and paid its CEO total annual compensation worth kr2.9m over the year to December 2024. Notably, that's an increase of 10% over the year before. We note that the salary portion, which stands at kr2.16m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Swedish Chemicals industry with market capitalizations below kr1.9b, we found that the median total CEO compensation was kr2.0m. Hence, we can conclude that Ulrika Bjork is remunerated higher than the industry median. Moreover, Ulrika Bjork also holds kr3.0m worth of Polygiene Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	kr2.2m	kr2.0m	75%
Other	kr716k	kr629k	25%
Total Compensation	kr2.9m	kr2.6m	100%

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. According to our research, Polygiene Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Polygiene Group AB's Growth

Over the last three years, Polygiene Group AB has shrunk its earnings per share by 78% per year. It achieved revenue growth of 35% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Polygiene Group AB Been A Good Investment?

The return of -31% over three years would not have pleased Polygiene Group AB shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Polygiene Group you should be aware of, and 1 of them is a bit unpleasant.

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.