Boozt AB (publ)'s (STO:BOOZT) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Boozt's Annual General Meeting to take place on 24th of April
• Total pay for CEO Hermann Haraldsson includes kr10.0m salary
• Total compensation is 338% above industry average
• Over the past three years, Boozt's EPS grew by 23% and over the past three years, the total loss to shareholders 11%

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As many shareholders of Boozt AB (publ) (STO:BOOZT) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 24th of April. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Boozt

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

Our data indicates that Boozt AB (publ) has a market capitalization of kr6.1b, and total annual CEO compensation was reported as kr36m for the year to December 2024. That's a notable decrease of 16% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at kr10m.

On examining similar-sized companies in the Sweden Multiline Retail industry with market capitalizations between kr3.8b and kr15b, we discovered that the median CEO total compensation of that group was kr8.2m. Accordingly, our analysis reveals that Boozt AB (publ) pays Hermann Haraldsson north of the industry median. Moreover, Hermann Haraldsson also holds kr61m worth of Boozt stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	kr10m	kr10m	28%
Other	kr26m	kr33m	72%
Total Compensation	kr36m	kr43m	100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. Boozt pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Boozt AB (publ)'s Growth

Boozt AB (publ) has seen its earnings per share (EPS) increase by 23% a year over the past three years. Its revenue is up 6.3% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Boozt AB (publ) Been A Good Investment?

With a three year total loss of 11% for the shareholders, Boozt AB (publ) would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. At 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 will likely improve performance in the future.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Boozt.

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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.