It Looks Like Infant Bacterial Therapeutics AB (publ)'s (STO:IBT B) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Infant Bacterial Therapeutics to hold its Annual General Meeting on 8th of May
• Salary of kr3.25m is part of CEO Staffan Stromberg's total remuneration
• The overall pay is 44% above the industry average
• Infant Bacterial Therapeutics' three-year loss to shareholders was 5.6% while its EPS was down 35% over the past three years

We've discovered 4 warning signs about Infant Bacterial Therapeutics. View them for free.

Infant Bacterial Therapeutics AB (publ) (STO:IBT B) has not performed well recently and CEO Staffan Stromberg will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 8th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Infant Bacterial Therapeutics

How Does Total Compensation For Staffan Stromberg Compare With Other Companies In The Industry?

At the time of writing, our data shows that Infant Bacterial Therapeutics AB (publ) has a market capitalization of kr834m, and reported total annual CEO compensation of kr6.1m for the year to December 2024. That's a notable increase of 14% on last year. Notably, the salary which is kr3.25m, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Swedish Pharmaceuticals industry with market capitalizations under kr1.9b, the reported median total CEO compensation was kr4.2m. This suggests that Staffan Stromberg is paid more than the median for the industry. What's more, Staffan Stromberg holds kr6.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. It's interesting to note that Infant Bacterial Therapeutics allocates a smaller portion of compensation to salary in comparison to the broader industry. 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 Infant Bacterial Therapeutics AB (publ)'s Growth Numbers

Over the last three years, Infant Bacterial Therapeutics AB (publ) has shrunk its earnings per share by 35% per year. Its revenue is down 95% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Infant Bacterial Therapeutics AB (publ) Been A Good Investment?

Since shareholders would have lost about 5.6% over three years, some Infant Bacterial Therapeutics AB (publ) investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which shouldn't be ignored) in Infant Bacterial Therapeutics we think you should know about.

Switching gears from Infant Bacterial Therapeutics, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.