Stock Analysis

What Does European Institute of Science's (NGM:EURI B) CEO Pay Reveal?

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NGM:EURI B
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The CEO of European Institute of Science AB (NGM:EURI B) is Dario Kriz, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether European Institute of Science pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for European Institute of Science

How Does Total Compensation For Dario Kriz Compare With Other Companies In The Industry?

At the time of writing, our data shows that European Institute of Science AB has a market capitalization of kr6.7m, and reported total annual CEO compensation of kr925k for the year to December 2019. That is, the compensation was roughly the same as last year. Notably, the salary which is kr852.8k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below kr1.7b, reported a median total CEO compensation of kr1.9m. That is to say, Dario Kriz is paid under the industry median.

Component20192018Proportion (2019)
Salary kr853k kr853k 92%
Other kr72k kr64k 8%
Total Compensationkr925k kr917k100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. It's interesting to note that European Institute of Science pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
NGM:EURI B CEO Compensation December 12th 2020

A Look at European Institute of Science AB's Growth Numbers

Over the past three years, European Institute of Science AB has seen its earnings per share (EPS) grow by 15% per year. Its revenue is up 22% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has European Institute of Science AB Been A Good Investment?

Since shareholders would have lost about 59% over three years, some European Institute of Science AB investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, European Institute of Science AB is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth over three years is certainly impressive. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 6 warning signs for European Institute of Science you should be aware of, and 5 of them are potentially serious.

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