Why We Think The CEO Of MedCap AB (publ) (STO:MCAP) May Soon See A Pay Rise

Key Insights

• MedCap to hold its Annual General Meeting on 5th of May
• Total pay for CEO Anders Dahlberg includes kr3.03m salary
• The total compensation is 36% less than the average for the industry
• MedCap's EPS grew by 29% over the past three years while total shareholder return over the past three years was 166%

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Shareholders will be pleased by the impressive results for MedCap AB (publ) (STO:MCAP) recently and CEO Anders Dahlberg has played a key role. At the upcoming AGM on 5th of May, 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. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for MedCap

How Does Total Compensation For Anders Dahlberg Compare With Other Companies In The Industry?

At the time of writing, our data shows that MedCap AB (publ) has a market capitalization of kr6.2b, and reported total annual CEO compensation of kr5.3m for the year to December 2024. That's a notable decrease of 20% on last year. In particular, the salary of kr3.03m, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the Swedish Life Sciences industry with market caps ranging from kr3.8b to kr15b, we found that the median CEO total compensation was kr8.2m. This suggests that Anders Dahlberg is paid below the industry median. What's more, Anders Dahlberg holds kr17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr3.0m	kr3.0m	57%
Other	kr2.2m	kr3.6m	43%
Total Compensation	kr5.3m	kr6.6m	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Although there is a difference in how total compensation is set, MedCap more or less reflects the market in terms of setting the salary. 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 MedCap AB (publ)'s Growth Numbers

MedCap AB (publ) has seen its earnings per share (EPS) increase by 29% a year over the past three years. It achieved revenue growth of 14% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has MedCap AB (publ) Been A Good Investment?

Boasting a total shareholder return of 166% over three years, MedCap 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.

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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

So you may want to check if insiders are buying MedCap shares with their own money (free access).

Important note: MedCap 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.