We Think Shareholders Are Less Likely To Approve A Pay Rise For Atrium Ljungberg AB (publ)'s (STO:ATRLJ B) CEO For Now

Key Insights

• Atrium Ljungberg to hold its Annual General Meeting on 20th of March
• Salary of kr7.44m is part of CEO Annie Anas's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Atrium Ljungberg's EPS fell by 39% and over the past three years, the total loss to shareholders 12%

In the past three years, the share price of Atrium Ljungberg AB (publ) (STO:ATRLJ B) has struggled to generate growth for its shareholders. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 20th of March, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for Atrium Ljungberg

How Does Total Compensation For Annie Anas Compare With Other Companies In The Industry?

According to our data, Atrium Ljungberg AB (publ) has a market capitalization of kr21b, and paid its CEO total annual compensation worth kr11m over the year to December 2024. That's a fairly small increase of 6.9% over the previous year. In particular, the salary of kr7.44m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Swedish Real Estate industry with market caps ranging from kr10b to kr33b, we found that the median CEO total compensation was kr14m. From this we gather that Annie Anas is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	kr7.4m	kr7.1m	70%
Other	kr3.2m	kr2.9m	30%
Total Compensation	kr11m	kr10.0m	100%

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Atrium Ljungberg is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Atrium Ljungberg AB (publ)'s Growth

Over the last three years, Atrium Ljungberg AB (publ) has shrunk its earnings per share by 39% per year. It achieved revenue growth of 17% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Atrium Ljungberg AB (publ) Been A Good Investment?

Since shareholders would have lost about 12% over three years, some Atrium Ljungberg AB (publ) investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In 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 is in line with their expectations.

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 3 warning signs for Atrium Ljungberg (1 is potentially serious!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.