Daniel Hasselberg has been the CEO of MAG Interactive AB (publ) (STO:MAGI) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for MAG Interactive
How Does Total Compensation For Daniel Hasselberg Compare With Other Companies In The Industry?
Our data indicates that MAG Interactive AB (publ) has a market capitalization of kr690m, and total annual CEO compensation was reported as kr2.9m for the year to August 2020. That is, the compensation was roughly the same as last year. Notably, the salary which is kr1.63m, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below kr1.7b, we found that the median total CEO compensation was kr1.7m. Hence, we can conclude that Daniel Hasselberg is remunerated higher than the industry median. Moreover, Daniel Hasselberg also holds kr81m worth of MAG Interactive stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | kr1.6m | kr1.7m | 57% |
| Other | kr1.2m | kr1.1m | 43% |
| Total Compensation | kr2.9m | kr2.8m | 100% |
On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. There isn't a significant difference between MAG Interactive and the broader market, in terms of salary allocation in the overall compensation package. 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 MAG Interactive AB (publ)'s Growth Numbers
MAG Interactive AB (publ) has seen its earnings per share (EPS) increase by 49% a year over the past three years. Its revenue is up 25% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 MAG Interactive AB (publ) Been A Good Investment?
With a three year total loss of 31% for the shareholders, MAG Interactive AB (publ) would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we noted earlier, MAG Interactive pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think Daniel is earning a very handsome sum.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for MAG Interactive that investors should think about before committing capital to this stock.
Important note: MAG Interactive is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. 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.
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About OM:MAGI
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