Increases to TradeDoubler AB (publ)'s (STO:TRAD) CEO Compensation Might Cool off for now

Key Insights

• TradeDoubler will host its Annual General Meeting on 20th of May
• Total pay for CEO Matthias Stadelmeyer includes kr3.76m salary
• Total compensation is 37% above industry average
• TradeDoubler's total shareholder return over the past three years was 22% while its EPS was down 45% over the past three years

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The share price of TradeDoubler AB (publ) (STO:TRAD) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 20th of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for TradeDoubler

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

Our data indicates that TradeDoubler AB (publ) has a market capitalization of kr352m, and total annual CEO compensation was reported as kr4.3m for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is kr3.76m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Swedish Media industry with market capitalizations below kr1.9b, we found that the median total CEO compensation was kr3.1m. Hence, we can conclude that Matthias Stadelmeyer is remunerated higher than the industry median. Moreover, Matthias Stadelmeyer also holds kr757k worth of TradeDoubler stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	kr3.8m	kr3.7m	88%
Other	kr503k	kr516k	12%
Total Compensation	kr4.3m	kr4.2m	100%

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. TradeDoubler is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

TradeDoubler AB (publ)'s Growth

Over the last three years, TradeDoubler AB (publ) has shrunk its earnings per share by 45% per year. In the last year, its revenue is up 3.1%.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has TradeDoubler AB (publ) Been A Good Investment?

TradeDoubler AB (publ) has served shareholders reasonably well, with a total return of 22% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for TradeDoubler (1 shouldn't be ignored!) that you should be aware of before investing here.

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.