Shareholders Will Probably Hold Off On Increasing Oneflow AB (publ)'s (STO:ONEF) CEO Compensation For The Time Being

Key Insights

• Oneflow will host its Annual General Meeting on 9th of May
• CEO Anders Hamnes' total compensation includes salary of kr1.55m
• The total compensation is similar to the average for the industry
• Oneflow's EPS declined by 21% over the past three years while total shareholder loss over the past three years was 26%

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Shareholders of Oneflow AB (publ) (STO:ONEF) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 9th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for Oneflow

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

According to our data, Oneflow AB (publ) has a market capitalization of kr836m, and paid its CEO total annual compensation worth kr2.5m over the year to December 2024. We note that's an increase of 13% above last year. In particular, the salary of kr1.55m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Swedish Software industry with market capitalizations below kr1.9b, we found that the median total CEO compensation was kr2.2m. This suggests that Oneflow remunerates its CEO largely in line with the industry average. Moreover, Anders Hamnes also holds kr155m worth of Oneflow stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Oneflow pays a modest slice of remuneration through salary, as compared to the broader 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 Oneflow AB (publ)'s Growth Numbers

Oneflow AB (publ) has reduced its earnings per share by 21% a year over the last three years. Its revenue is up 28% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Oneflow AB (publ) Been A Good Investment?

With a three year total loss of 26% for the shareholders, Oneflow AB (publ) would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Oneflow that investors should be aware of in a dynamic business environment.

Important note: Oneflow is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.