Shareholders Will Probably Hold Off On Increasing Clas Ohlson AB (publ)'s (STO:CLAS B) CEO Compensation For The Time Being

Key Insights

• Clas Ohlson's Annual General Meeting to take place on 6th of September
• Salary of kr7.20m is part of CEO Kristofer Tonström's total remuneration
• Total compensation is 32% above industry average
• Over the past three years, Clas Ohlson's EPS grew by 6.4% and over the past three years, the total shareholder return was 115%

Under the guidance of CEO Kristofer Tonström, Clas Ohlson AB (publ) (STO:CLAS B) has performed reasonably well recently. As shareholders go into the upcoming AGM on 6th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Clas Ohlson

How Does Total Compensation For Kristofer Tonström Compare With Other Companies In The Industry?

Our data indicates that Clas Ohlson AB (publ) has a market capitalization of kr11b, and total annual CEO compensation was reported as kr16m for the year to April 2024. That's a notable increase of 41% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr7.2m.

On comparing similar companies from the Swedish Specialty Retail industry with market caps ranging from kr4.1b to kr16b, we found that the median CEO total compensation was kr12m. Accordingly, our analysis reveals that Clas Ohlson AB (publ) pays Kristofer Tonström north of the industry median. Moreover, Kristofer Tonström also holds kr5.9m worth of Clas Ohlson 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	kr7.2m	kr6.6m	46%
Other	kr8.3m	kr4.4m	54%
Total Compensation	kr16m	kr11m	100%

Talking in terms of the industry, salary represented approximately 55% of total compensation out of all the companies we analyzed, while other remuneration made up 45% of the pie. Clas Ohlson sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Clas Ohlson AB (publ)'s Growth Numbers

Clas Ohlson AB (publ)'s earnings per share (EPS) grew 6.4% per year over the last three years. It achieved revenue growth of 13% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. 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 Clas Ohlson AB (publ) Been A Good Investment?

Boasting a total shareholder return of 115% over three years, Clas Ohlson AB (publ) has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Clas Ohlson that investors should be aware of in a dynamic business environment.

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.