BioInvent International AB (publ)'s (STO:BINV) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• BioInvent International will host its Annual General Meeting on 29th of April
• Salary of kr2.96m is part of CEO Martin Welschof's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, BioInvent International's EPS fell by 35% and over the past three years, the total loss to shareholders 34%

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BioInvent International AB (publ) (STO:BINV) has not performed well recently and CEO Martin Welschof will probably need to up their game. At the upcoming AGM on 29th of April, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for BioInvent International

How Does Total Compensation For Martin Welschof Compare With Other Companies In The Industry?

According to our data, BioInvent International AB (publ) has a market capitalization of kr1.9b, and paid its CEO total annual compensation worth kr5.1m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. In particular, the salary of kr2.96m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Swedish Biotechs industry with market capitalizations ranging from kr957m to kr3.8b, the reported median CEO total compensation was kr5.1m. So it looks like BioInvent International compensates Martin Welschof in line with the median for the industry. Furthermore, Martin Welschof directly owns kr632k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	kr3.0m	kr2.9m	58%
Other	kr2.1m	kr2.3m	42%
Total Compensation	kr5.1m	kr5.2m	100%

Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. There isn't a significant difference between BioInvent International 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 BioInvent International AB (publ)'s Growth Numbers

Over the last three years, BioInvent International AB (publ) has shrunk its earnings per share by 35% per year. In the last year, its revenue is down 37%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. 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 BioInvent International AB (publ) Been A Good Investment?

Few BioInvent International AB (publ) shareholders would feel satisfied with the return of -34% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for BioInvent International that investors should think about before committing capital to this 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. 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.