Should Shareholders Reconsider Fenix Outdoor International AG's (STO:FOI B) CEO Compensation Package?

Key Insights

• Fenix Outdoor International will host its Annual General Meeting on 5th of May
• Salary of €734.0k is part of CEO Erik Nordin's total remuneration
• Total compensation is similar to the industry average
• Fenix Outdoor International's three-year loss to shareholders was 28% while its EPS was down 36% over the past three years

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Shareholders will probably not be too impressed with the underwhelming results at Fenix Outdoor International AG (STO:FOI B) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 5th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Fenix Outdoor International

How Does Total Compensation For Erik Nordin Compare With Other Companies In The Industry?

Our data indicates that Fenix Outdoor International AG has a market capitalization of kr8.0b, and total annual CEO compensation was reported as €855k for the year to December 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at €734.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Swedish Specialty Retail industry with market capitalizations ranging from kr3.8b to kr15b, the reported median CEO total compensation was €941k. So it looks like Fenix Outdoor International compensates Erik Nordin in line with the median for the industry. Furthermore, Erik Nordin directly owns kr1.2b worth of shares in the company, implying that they are deeply invested in the company's success.

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. Fenix Outdoor International pays out 86% of remuneration in the form of a salary, significantly higher than the industry average. 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.

A Look at Fenix Outdoor International AG's Growth Numbers

Fenix Outdoor International AG has reduced its earnings per share by 36% a year over the last three years. In the last year, its revenue is down 7.3%.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Fenix Outdoor International AG Been A Good Investment?

Given the total shareholder loss of 28% over three years, many shareholders in Fenix Outdoor International AG are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Fenix Outdoor International we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.