Vertiseit AB (publ)'s (STO:VERT B) CEO Looks Due For A Compensation Raise

Key Insights

• Vertiseit to hold its Annual General Meeting on 24th of April
• CEO Johan Lind's total compensation includes salary of kr1.29m
• Total compensation is 72% below industry average
• Vertiseit's EPS grew by 102% over the past three years while total shareholder return over the past three years was 112%

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The solid performance at Vertiseit AB (publ) (STO:VERT B) has been impressive and shareholders will probably be pleased to know that CEO Johan Lind has delivered. At the upcoming AGM on 24th of April, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Vertiseit

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

According to our data, Vertiseit AB (publ) has a market capitalization of kr1.9b, and paid its CEO total annual compensation worth kr1.6m over the year to December 2024. That's a fairly small increase of 3.3% over the previous year. In particular, the salary of kr1.29m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Swedish Software industry with market capitalizations between kr962m and kr3.8b, we discovered that the median CEO total compensation of that group was kr5.7m. That is to say, Johan Lind is paid under the industry median. What's more, Johan Lind holds kr129m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr1.3m	kr1.3m	80%
Other	kr323k	kr277k	20%
Total Compensation	kr1.6m	kr1.6m	100%

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. There isn't a significant difference between Vertiseit and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

Over the past three years, Vertiseit AB (publ) has seen its earnings per share (EPS) grow by 102% per year. Its revenue is up 33% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 Vertiseit AB (publ) Been A Good Investment?

Boasting a total shareholder return of 112% over three years, Vertiseit 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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've identified 1 warning sign for Vertiseit that investors should be aware of in a dynamic business environment.

Important note: Vertiseit 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.