Moberg Pharma AB (publ)'s (STO:MOB) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Moberg Pharma to hold its Annual General Meeting on 14th of May
• Salary of kr1.99m is part of CEO Anna Ljung's total remuneration
• Total compensation is similar to the industry average
• Moberg Pharma's three-year loss to shareholders was 25% while its EPS was down 42% over the past three years

In the past three years, the share price of Moberg Pharma AB (publ) (STO:MOB) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. The AGM coming up on 14th of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

View our latest analysis for Moberg Pharma

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

According to our data, Moberg Pharma AB (publ) has a market capitalization of kr1.1b, and paid its CEO total annual compensation worth kr3.5m over the year to December 2023. Notably, that's an increase of 20% over the year before. Notably, the salary which is kr1.99m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Swedish Pharmaceuticals industry with market capitalizations below kr2.2b, reported a median total CEO compensation of kr3.0m. From this we gather that Anna Ljung is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	kr2.0m	kr1.7m	57%
Other	kr1.5m	kr1.3m	43%
Total Compensation	kr3.5m	kr2.9m	100%

Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. In Moberg Pharma's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Moberg Pharma AB (publ)'s Growth

Over the last three years, Moberg Pharma AB (publ) has shrunk its earnings per share by 42% per year. Its revenue is up 296% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Moberg Pharma AB (publ) Been A Good Investment?

Given the total shareholder loss of 25% over three years, many shareholders in Moberg Pharma AB (publ) are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for Moberg Pharma (3 are potentially serious!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.