It's Unlikely That Synsam AB (publ)'s (STO:SYNSAM) CEO Will See A Huge Pay Rise This Year

Key Insights

• Synsam to hold its Annual General Meeting on 23rd of April
• Total pay for CEO Hakan Lundstedt includes kr8.60m salary
• The overall pay is 83% above the industry average
• Over the past three years, Synsam's EPS grew by 62% and over the past three years, the total loss to shareholders 29%

Our free stock report includes 1 warning sign investors should be aware of before investing in Synsam. Read for free now.

In the past three years, the share price of Synsam AB (publ) (STO:SYNSAM) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 23rd of April could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Synsam

How Does Total Compensation For Hakan Lundstedt Compare With Other Companies In The Industry?

According to our data, Synsam AB (publ) has a market capitalization of kr6.5b, and paid its CEO total annual compensation worth kr19m over the year to December 2024. We note that's an increase of 15% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at kr8.6m.

In comparison with other companies in the Swedish Specialty Retail industry with market capitalizations ranging from kr3.9b to kr16b, the reported median CEO total compensation was kr10m. Hence, we can conclude that Hakan Lundstedt is remunerated higher than the industry median. Furthermore, Hakan Lundstedt directly owns kr76m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr8.6m	kr8.3m	46%
Other	kr10m	kr8.1m	54%
Total Compensation	kr19m	kr16m	100%

Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. Synsam pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Synsam AB (publ)'s Growth Numbers

Over the past three years, Synsam AB (publ) has seen its earnings per share (EPS) grow by 62% per year. In the last year, its revenue is up 9.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Synsam AB (publ) Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Synsam AB (publ) investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with 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 1 warning sign for Synsam that investors should look into moving forward.

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.

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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.