Here's Why It's Unlikely That Annehem Fastigheter AB's (STO:ANNE B) CEO Will See A Pay Rise This Year

Key Insights

• Annehem Fastigheter to hold its Annual General Meeting on 14th of May
• Salary of kr2.87m is part of CEO Monica Fallenius's total remuneration
• Total compensation is 76% above industry average
• Annehem Fastigheter's three-year loss to shareholders was 35% while its EPS was down 57% over the past three years

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

Annehem Fastigheter AB (STO:ANNE B) has not performed well recently and CEO Monica Fallenius will probably need to up their game. At the upcoming AGM on 14th of May, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Annehem Fastigheter

Comparing Annehem Fastigheter AB's CEO Compensation With The Industry

Our data indicates that Annehem Fastigheter AB has a market capitalization of kr1.4b, and total annual CEO compensation was reported as kr5.1m for the year to December 2024. We note that's an increase of 10.0% above last year. We note that the salary of kr2.87m makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar-sized companies in the Swedish Real Estate industry with market capitalizations below kr1.9b, we found that the median total CEO compensation was kr2.9m. Accordingly, our analysis reveals that Annehem Fastigheter AB pays Monica Fallenius north of the industry median. What's more, Monica Fallenius holds kr986k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr2.9m	kr2.7m	56%
Other	kr2.2m	kr2.0m	44%
Total Compensation	kr5.1m	kr4.6m	100%

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Annehem Fastigheter sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Annehem Fastigheter AB's Growth

Over the last three years, Annehem Fastigheter AB has shrunk its earnings per share by 57% per year. In the last year, its revenue is up 8.3%.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Annehem Fastigheter AB Been A Good Investment?

The return of -35% over three years would not have pleased Annehem Fastigheter AB shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Annehem Fastigheter we think you should know about.

Important note: Annehem Fastigheter 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.