It Looks Like The CEO Of Intervacc AB (publ) (STO:IVACC) May Be Underpaid Compared To Peers

Shareholders will be pleased by the impressive results for Intervacc AB (publ) (STO:IVACC) recently and CEO Andreas Andersson has played a key role. At the upcoming AGM on 09 June 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for Intervacc

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

At the time of writing, our data shows that Intervacc AB (publ) has a market capitalization of kr4.3b, and reported total annual CEO compensation of kr1.8m for the year to December 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of kr1.54m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between kr1.7b and kr6.6b had a median total CEO compensation of kr3.2m. This suggests that Andreas Andersson is paid below the industry median.

Component	2020	2019	Proportion (2020)
Salary	kr1.5m	kr1.5m	84%
Other	kr288k	kr312k	16%
Total Compensation	kr1.8m	kr1.8m	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. Intervacc is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

Over the past three years, Intervacc AB (publ) has seen its earnings per share (EPS) grow by 21% per year. In the last year, its revenue is down 17%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Intervacc AB (publ) Been A Good Investment?

Boasting a total shareholder return of 1,917% over three years, Intervacc AB (publ) has done well by shareholders. 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.

To Conclude...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Intervacc you should be aware of, and 1 of them is significant.

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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