Shareholders Will Probably Hold Off On Increasing Moberg Pharma AB (publ)'s (STO:MOB) CEO Compensation For The Time Being

Key Insights

• Moberg Pharma's Annual General Meeting to take place on 22nd of May
• Total pay for CEO Anna Ljung includes kr2.12m salary
• The overall pay is comparable to the industry average
• Moberg Pharma's three-year loss to shareholders was 64% while its EPS was down 16% over the past three years

Our free stock report includes 4 warning signs investors should be aware of before investing in Moberg Pharma. Read for free now.

The underwhelming share price performance of Moberg Pharma AB (publ) (STO:MOB) in the past three years would have disappointed many shareholders. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. The AGM coming up on 22nd 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.

Check out our latest analysis for Moberg Pharma

How Does Total Compensation For Anna Ljung Compare With Other Companies In The Industry?

Our data indicates that Moberg Pharma AB (publ) has a market capitalization of kr388m, and total annual CEO compensation was reported as kr4.2m for the year to December 2024. Notably, that's an increase of 20% over the year before. In particular, the salary of kr2.12m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Swedish Pharmaceuticals industry with market capitalizations below kr1.9b, reported a median total CEO compensation of kr4.2m. From this we gather that Anna Ljung is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	kr2.1m	kr2.0m	50%
Other	kr2.1m	kr1.5m	50%
Total Compensation	kr4.2m	kr3.5m	100%

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Moberg Pharma pays a modest slice of remuneration through salary, as compared 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

Moberg Pharma AB (publ) has reduced its earnings per share by 16% a year over the last three years. It achieved revenue growth of 1,468% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Moberg Pharma AB (publ) Been A Good Investment?

Few Moberg Pharma AB (publ) shareholders would feel satisfied with the return of -64% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

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 did our research and identified 4 warning signs (and 1 which is significant) in Moberg Pharma we think you should know about.

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.