How Much Is Abliva AB (publ) (STO:ABLI) Paying Its CEO?

This article will reflect on the compensation paid to Erik Kinnmann who has served as CEO of Abliva AB (publ) (STO:ABLI) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Abliva.

View our latest analysis for Abliva

Comparing Abliva AB (publ)'s CEO Compensation With the industry

At the time of writing, our data shows that Abliva AB (publ) has a market capitalization of kr240m, and reported total annual CEO compensation of kr4.1m for the year to December 2019. That's just a smallish increase of 3.8% on last year. We note that the salary portion, which stands at kr2.19m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under kr1.7b, the reported median total CEO compensation was kr1.8m. This suggests that Erik Kinnmann is paid more than the median for the industry.

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 Abliva allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Abliva AB (publ)'s Growth Numbers

Abliva AB (publ)'s earnings per share (EPS) grew 48% per year over the last three years. In the last year, its revenue is down 67%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Abliva AB (publ) Been A Good Investment?

Since shareholders would have lost about 71% over three years, some Abliva AB (publ) 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 noted earlier, Abliva pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Erik is earning a very handsome sum.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 7 warning signs for Abliva (of which 4 are a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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. 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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