Some Shareholders May Object To A Pay Rise For Embracer Group AB (publ)'s (STO:EMBRAC B) CEO This Year

Key Insights

• Embracer Group will host its Annual General Meeting on 19th of September
• Total pay for CEO Lars Wingefors includes kr1.00m salary
• The total compensation is 89% less than the average for the industry
• Over the past three years, Embracer Group's EPS fell by 89% and over the past three years, the total loss to shareholders 75%

Performance at Embracer Group AB (publ) (STO:EMBRAC B) has not been particularly rosy recently and shareholders will likely be holding CEO Lars Wingefors and the board accountable for this. The next AGM coming up on 19th of September will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for Embracer Group

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

According to our data, Embracer Group AB (publ) has a market capitalization of kr32b, and paid its CEO total annual compensation worth kr1.0m over the year to March 2024. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth kr1.0m.

In comparison with other companies in the Swedish Entertainment industry with market capitalizations ranging from kr21b to kr66b, the reported median CEO total compensation was kr8.8m. This suggests that Lars Wingefors is paid below the industry median.

Component	2024	2023	Proportion (2024)
Salary	kr1.0m	kr1.0m	100%
Other	-	-	-
Total Compensation	kr1.0m	kr1.0m	100%

Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Speaking on a company level, Embracer Group prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Embracer Group AB (publ)'s Growth Numbers

Embracer Group AB (publ) has reduced its earnings per share by 89% a year over the last three years. Its revenue is down 2.9% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Embracer Group AB (publ) Been A Good Investment?

The return of -75% over three years would not have pleased Embracer Group AB (publ) shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Embracer Group rewards its CEO solely through a salary, ignoring non-salary benefits completely. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

Shareholders may want to check for free if Embracer Group insiders are buying or selling shares.

Switching gears from Embracer Group, 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.

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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.