Most Shareholders Will Probably Agree With Spago Nanomedical AB (publ)'s (STO:SPAGO) CEO Compensation

Key Insights

• Spago Nanomedical's Annual General Meeting to take place on 10th of June
• CEO Mats Hansen's total compensation includes salary of kr1.74m
• The overall pay is 37% below the industry average
• Spago Nanomedical's EPS grew by 27% over the past three years while total shareholder loss over the past three years was 96%

Shareholders may be wondering what CEO Mats Hansen plans to do to improve the less than great performance at Spago Nanomedical AB (publ) (STO:SPAGO) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 10th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Spago Nanomedical

How Does Total Compensation For Mats Hansen Compare With Other Companies In The Industry?

Our data indicates that Spago Nanomedical AB (publ) has a market capitalization of kr97m, and total annual CEO compensation was reported as kr2.4m for the year to December 2023. Notably, that's an increase of 16% over the year before. We note that the salary portion, which stands at kr1.74m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Swedish Biotechs industry with market capitalizations under kr2.1b, the reported median total CEO compensation was kr3.8m. Accordingly, Spago Nanomedical pays its CEO under the industry median.

Component	2023	2022	Proportion (2023)
Salary	kr1.7m	kr1.6m	72%
Other	kr665k	kr443k	28%
Total Compensation	kr2.4m	kr2.1m	100%

Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. Spago Nanomedical is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Spago Nanomedical AB (publ)'s Growth

Over the past three years, Spago Nanomedical AB (publ) has seen its earnings per share (EPS) grow by 27% per year. In the last year, its revenue is down 5.4%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Spago Nanomedical AB (publ) Been A Good Investment?

With a total shareholder return of -96% over three years, Spago Nanomedical AB (publ) shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 6 warning signs for Spago Nanomedical (3 can't be ignored!) that you should be aware of before investing here.

Switching gears from Spago Nanomedical, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.