Key Insights
- Nelly Group will host its Annual General Meeting on 23rd of May
- Total pay for CEO Helena Karlinder-Ostlundh includes kr2.30m salary
- The total compensation is similar to the average for the industry
- Nelly Group's EPS grew by 107% over the past three years while total shareholder return over the past three years was 158%
The performance at Nelly Group AB (publ) (STO:NELLY) has been quite strong recently and CEO Helena Karlinder-Ostlundh has played a role in it. Coming up to the next AGM on 23rd of May, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
Check out our latest analysis for Nelly Group
How Does Total Compensation For Helena Karlinder-Ostlundh Compare With Other Companies In The Industry?
According to our data, Nelly Group AB (publ) has a market capitalization of kr1.2b, and paid its CEO total annual compensation worth kr3.5m over the year to December 2024. Notably, that's an increase of 13% over the year before. Notably, the salary which is kr2.30m, represents most of the total compensation being paid.
In comparison with other companies in the Swedish Specialty Retail industry with market capitalizations under kr2.0b, the reported median total CEO compensation was kr4.0m. This suggests that Nelly Group remunerates its CEO largely in line with the industry average.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | kr2.3m | kr2.2m | 66% |
| Other | kr1.2m | kr900k | 34% |
| Total Compensation | kr3.5m | kr3.1m | 100% |
On an industry level, around 56% of total compensation represents salary and 44% is other remuneration. It's interesting to note that Nelly Group pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Nelly Group AB (publ)'s Growth Numbers
Nelly Group AB (publ)'s earnings per share (EPS) grew 107% per year over the last three years. It achieved revenue growth of 6.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Nelly Group AB (publ) Been A Good Investment?
Boasting a total shareholder return of 158% over three years, Nelly Group AB (publ) has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Nelly Group (free visualization of insider trades).
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.
Valuation is complex, but we're here to simplify it.
Discover if Nelly Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.