Key Things To Understand About Gasporox's (STO:GPX) CEO Pay Cheque

Märta Xu has been the CEO of Gasporox AB (publ) (STO:GPX) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Gasporox

Comparing Gasporox AB (publ)'s CEO Compensation With the industry

At the time of writing, our data shows that Gasporox AB (publ) has a market capitalization of kr114m, and reported total annual CEO compensation of kr1.9m for the year to December 2019. That's a slight decrease of 6.1% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at kr922k.

In comparison with other companies in the industry with market capitalizations under kr1.7b, the reported median total CEO compensation was kr3.4m. That is to say, Märta Xu is paid under the industry median. What's more, Märta Xu holds kr2.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. Gasporox pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

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

Gasporox AB (publ) has reduced its earnings per share by 3.3% a year over the last three years. It achieved revenue growth of 16% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Gasporox AB (publ) Been A Good Investment?

Boasting a total shareholder return of 65% over three years, Gasporox AB (publ) has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As previously discussed, Märta is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. On top of that, revenue growth and shareholder returns have been impressive. However, EPS growth has been negative during this time. But all things considered, we believe shareholders will be happy with the performance, and that's why CEO compensation is appropriate in our opinion.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 6 warning signs for Gasporox (2 are a bit concerning!) that you should be aware of before investing here.

Switching gears from Gasporox, 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. 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.
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