Camurus AB (publ)'s (STO:CAMX) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Camurus to hold its Annual General Meeting on 8th of May
• CEO Fredrik Tiberg's total compensation includes salary of kr5.92m
• Total compensation is similar to the industry average
• Camurus' EPS grew by 126% over the past three years while total shareholder return over the past three years was 134%

We have been pretty impressed with the performance at Camurus AB (publ) (STO:CAMX) recently and CEO Fredrik Tiberg deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 8th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Camurus

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

Our data indicates that Camurus AB (publ) has a market capitalization of kr29b, and total annual CEO compensation was reported as kr12m for the year to December 2023. Notably, that's an increase of 19% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at kr5.9m.

In comparison with other companies in the Swedish Pharmaceuticals industry with market capitalizations ranging from kr22b to kr70b, the reported median CEO total compensation was kr16m. So it looks like Camurus compensates Fredrik Tiberg in line with the median for the industry. Moreover, Fredrik Tiberg also holds kr797m worth of Camurus stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	kr5.9m	kr5.6m	49%
Other	kr6.1m	kr4.5m	51%
Total Compensation	kr12m	kr10m	100%

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. It's interesting to note that Camurus allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Camurus AB (publ)'s Growth

Camurus AB (publ)'s earnings per share (EPS) grew 126% per year over the last three years. In the last year, its revenue is up 80%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Camurus AB (publ) Been A Good Investment?

We think that the total shareholder return of 134%, over three years, would leave most Camurus AB (publ) shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Camurus that investors should think about before committing capital to this stock.

Important note: Camurus 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. 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.