Increases to Saniona AB (publ)'s (STO:SANION) CEO Compensation Might Cool off for now

Key Insights

• Saniona's Annual General Meeting to take place on 28th of May
• Total pay for CEO Thomas Feldthus includes kr2.42m salary
• The total compensation is 58% higher than the average for the industry
• Saniona's total shareholder return over the past three years was 273% while its EPS grew by 90% over the past three years

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CEO Thomas Feldthus has done a decent job of delivering relatively good performance at Saniona AB (publ) (STO:SANION) recently. As shareholders go into the upcoming AGM on 28th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Saniona

How Does Total Compensation For Thomas Feldthus Compare With Other Companies In The Industry?

Our data indicates that Saniona AB (publ) has a market capitalization of kr1.1b, and total annual CEO compensation was reported as kr4.3m for the year to December 2024. That's a modest increase of 7.2% on the prior year. Notably, the salary which is kr2.42m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Swedish Biotechs industry with market capitalizations below kr1.9b, reported a median total CEO compensation of kr2.7m. Hence, we can conclude that Thomas Feldthus is remunerated higher than the industry median. Moreover, Thomas Feldthus also holds kr11m worth of Saniona stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	kr2.4m	kr2.4m	57%
Other	kr1.8m	kr1.6m	43%
Total Compensation	kr4.3m	kr4.0m	100%

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. Saniona is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 Saniona AB (publ)'s Growth Numbers

Saniona AB (publ) has seen its earnings per share (EPS) increase by 90% a year over the past three years. In the last year, its revenue is up 1,887%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Saniona AB (publ) Been A Good Investment?

We think that the total shareholder return of 273%, over three years, would leave most Saniona AB (publ) shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Saniona that investors should be aware of in a dynamic business environment.

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. 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.