Hufvudstaden AB (publ)'s (STO:HUFV A) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Hufvudstaden to hold its Annual General Meeting on 20th of March
• Salary of kr5.23m is part of CEO Anders Nygren's total remuneration
• The overall pay is 34% below the industry average
• Over the past three years, Hufvudstaden's EPS fell by 50% and over the past three years, the total loss to shareholders 8.1%

The underwhelming performance at Hufvudstaden AB (publ) (STO:HUFV A) recently has probably not pleased shareholders. The next AGM coming up on 20th of March will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

See our latest analysis for Hufvudstaden

Comparing Hufvudstaden AB (publ)'s CEO Compensation With The Industry

According to our data, Hufvudstaden AB (publ) has a market capitalization of kr23b, and paid its CEO total annual compensation worth kr9.2m over the year to December 2024. That's a notable increase of 12% on last year. In particular, the salary of kr5.23m, makes up a fairly large 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. This suggests that Anders Nygren is paid below the industry median. What's more, Anders Nygren holds kr684k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. In Hufvudstaden's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Hufvudstaden AB (publ)'s Growth

Hufvudstaden AB (publ) has reduced its earnings per share by 50% a year over the last three years. Its revenue is up 7.3% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Hufvudstaden AB (publ) Been A Good Investment?

With a three year total loss of 8.1% for the shareholders, Hufvudstaden AB (publ) would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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. We did our research and spotted 2 warning signs for Hufvudstaden that investors should look into moving forward.

Switching gears from Hufvudstaden, 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.