Exsitec Holding AB (publ)'s (STO:EXS) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Exsitec Holding to hold its Annual General Meeting on 7th of May
• CEO Johan Kallblad's total compensation includes salary of kr2.90m
• The overall pay is comparable to the industry average
• Exsitec Holding's total shareholder return over the past three years was 25% while its EPS grew by 384% over the past three years

Under the guidance of CEO Johan Kallblad, Exsitec Holding AB (publ) (STO:EXS) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 7th of May. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Exsitec Holding

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

At the time of writing, our data shows that Exsitec Holding AB (publ) has a market capitalization of kr2.3b, and reported total annual CEO compensation of kr4.6m for the year to December 2023. Notably, that's an increase of 56% over the year before. Notably, the salary which is kr2.90m, represents most of the total compensation being paid.

For comparison, other companies in the Swedish IT industry with market capitalizations ranging between kr1.1b and kr4.4b had a median total CEO compensation of kr5.7m. So it looks like Exsitec Holding compensates Johan Kallblad in line with the median for the industry. What's more, Johan Kallblad holds kr187m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	kr2.9m	kr2.2m	64%
Other	kr1.7m	kr718k	36%
Total Compensation	kr4.6m	kr2.9m	100%

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. Exsitec Holding is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Exsitec Holding AB (publ)'s Growth

Exsitec Holding AB (publ)'s earnings per share (EPS) grew 384% per year over the last three years. In the last year, its revenue is up 10%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Exsitec Holding AB (publ) Been A Good Investment?

Exsitec Holding AB (publ) has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Exsitec Holding that you should be aware of before investing.

Switching gears from Exsitec Holding, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.