We Think Shareholders Are Less Likely To Approve A Pay Rise For SenzaGen AB's (STO:SENZA) CEO For Now

Key Insights

• SenzaGen to hold its Annual General Meeting on 14th of May
• Salary of kr1.92m is part of CEO Peter Nahlstedt's total remuneration
• The overall pay is comparable to the industry average
• SenzaGen's three-year loss to shareholders was 42% while its EPS grew by 22% over the past three years

Our free stock report includes 2 warning signs investors should be aware of before investing in SenzaGen. Read for free now.

Shareholders of SenzaGen AB (STO:SENZA) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 14th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for SenzaGen

How Does Total Compensation For Peter Nahlstedt Compare With Other Companies In The Industry?

At the time of writing, our data shows that SenzaGen AB has a market capitalization of kr166m, and reported total annual CEO compensation of kr2.6m for the year to December 2024. We note that's a decrease of 13% compared to last year. Notably, the salary which is kr1.92m, represents most of the total compensation being paid.

In comparison with other companies in the Swedish Biotechs industry with market capitalizations under kr1.9b, the reported median total CEO compensation was kr2.8m. So it looks like SenzaGen compensates Peter Nahlstedt in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	kr1.9m	kr2.1m	74%
Other	kr691k	kr861k	26%
Total Compensation	kr2.6m	kr3.0m	100%

Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. SenzaGen pays out 74% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

SenzaGen AB's Growth

SenzaGen AB's earnings per share (EPS) grew 22% per year over the last three years. It achieved revenue growth of 16% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 SenzaGen AB Been A Good Investment?

Few SenzaGen AB shareholders would feel satisfied with the return of -42% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At 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 will likely improve performance in the future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for SenzaGen that you should be aware of before investing.

Important note: SenzaGen 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.