Increases to CEO Compensation Might Be Put On Hold For Now at Net Insight AB (publ) (STO:NETI B)

Key Insights

• Net Insight's Annual General Meeting to take place on 7th of May
• Total pay for CEO Crister Fritzson includes kr5.58m salary
• Total compensation is 200% above industry average
• Net Insight's total shareholder return over the past three years was 119% while its EPS grew by 66% over the past three years

Under the guidance of CEO Crister Fritzson, Net Insight AB (publ) (STO:NETI B) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 7th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Net Insight

How Does Total Compensation For Crister Fritzson Compare With Other Companies In The Industry?

Our data indicates that Net Insight AB (publ) has a market capitalization of kr1.8b, and total annual CEO compensation was reported as kr9.9m for the year to December 2023. That is, the compensation was roughly the same as last year. We note that the salary of kr5.58m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Swedish Communications industry with market capitalizations ranging between kr1.1b and kr4.4b had a median total CEO compensation of kr3.3m. This suggests that Crister Fritzson is paid more than the median for the industry. What's more, Crister Fritzson holds kr2.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. Although there is a difference in how total compensation is set, Net Insight more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Net Insight AB (publ)'s Growth Numbers

Net Insight AB (publ) has seen its earnings per share (EPS) increase by 66% a year over the past three years. In the last year, its revenue is up 17%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Net Insight AB (publ) Been A Good Investment?

Most shareholders would probably be pleased with Net Insight AB (publ) for providing a total return of 119% over three years. 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Net Insight that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.