Here's Why Shareholders Will Not Be Complaining About KebNi AB (publ)'s (STO:KEBNI B) CEO Pay Packet

Key Insights

• KebNi will host its Annual General Meeting on 8th of May
• Total pay for CEO Torbjorn Saxmo includes kr1.92m salary
• The total compensation is similar to the average for the industry
• KebNi's EPS grew by 64% over the past three years while total shareholder return over the past three years was 118%

Our free stock report includes 3 warning signs investors should be aware of before investing in KebNi. Read for free now.

It would be hard to discount the role that CEO Torbjorn Saxmo has played in delivering the impressive results at KebNi AB (publ) (STO:KEBNI B) recently. Coming up to the next AGM on 8th of May, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for KebNi

How Does Total Compensation For Torbjorn Saxmo Compare With Other Companies In The Industry?

Our data indicates that KebNi AB (publ) has a market capitalization of kr444m, and total annual CEO compensation was reported as kr2.5m for the year to December 2024. That is, the compensation was roughly the same as last year. In particular, the salary of kr1.92m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Swedish Communications industry with market capitalizations under kr1.9b, the reported median total CEO compensation was kr2.7m. From this we gather that Torbjorn Saxmo is paid around the median for CEOs in the industry. Furthermore, Torbjorn Saxmo directly owns kr981k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr1.9m	kr1.9m	76%
Other	kr593k	kr543k	24%
Total Compensation	kr2.5m	kr2.5m	100%

On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. KebNi is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

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

KebNi AB (publ)'s earnings per share (EPS) grew 64% per year over the last three years. Its revenue is up 54% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 KebNi AB (publ) Been A Good Investment?

Boasting a total shareholder return of 118% over three years, KebNi AB (publ) has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for KebNi (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.