How Should Investors React To Sprint Bioscience AB (publ)'s (STO:SPRINT) CEO Pay?

Anders Åberg has been the CEO of Sprint Bioscience AB (publ) (STO:SPRINT) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Sprint Bioscience

How Does Anders Åberg's Compensation Compare With Similar Sized Companies?

Our data indicates that Sprint Bioscience AB (publ) is worth kr174m, and total annual CEO compensation is kr1.2m. That's a notable increase of 57% on last year. We looked at a group of companies with market capitalizations under kr1.8b, and the median CEO compensation was kr1.8m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Sprint Bioscience has changed from year to year.

Is Sprint Bioscience AB (publ) Growing?

On average over the last three years, Sprint Bioscience AB (publ) has grown earnings per share (EPS) by 22% each year. Its revenue is down -23% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Sprint Bioscience AB (publ) Been A Good Investment?

Since shareholders would have lost about 53% over three years, some Sprint Bioscience AB (publ) shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It appears that Sprint Bioscience AB (publ) remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Anders Åberg receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.

When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.