We Think Some Shareholders May Hesitate To Increase Bredband2 i Skandinavien AB (publ)'s (STO:BRE2) CEO Compensation

Key Insights

• Bredband2 i Skandinavien's Annual General Meeting to take place on 19th of March
• Salary of kr7.20m is part of CEO Daniel Krook's total remuneration
• The overall pay is 59% above the industry average
• Bredband2 i Skandinavien's EPS grew by 10% over the past three years while total shareholder return over the past three years was 10%

Under the guidance of CEO Daniel Krook, Bredband2 i Skandinavien AB (publ) (STO:BRE2) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 19th of March. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Bredband2 i Skandinavien

Comparing Bredband2 i Skandinavien AB (publ)'s CEO Compensation With The Industry

Our data indicates that Bredband2 i Skandinavien AB (publ) has a market capitalization of kr2.0b, and total annual CEO compensation was reported as kr12m for the year to December 2024. That's a fairly small increase of 6.3% over the previous year. In particular, the salary of kr7.20m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Sweden Telecom industry with market caps ranging from kr1.0b to kr4.1b, we found that the median CEO total compensation was kr7.4m. Accordingly, our analysis reveals that Bredband2 i Skandinavien AB (publ) pays Daniel Krook north of the industry median. Moreover, Daniel Krook also holds kr31m worth of Bredband2 i Skandinavien stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	kr7.2m	kr6.8m	61%
Other	kr4.6m	kr4.3m	39%
Total Compensation	kr12m	kr11m	100%

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. There isn't a significant difference between Bredband2 i Skandinavien and the broader market, in terms of salary allocation in the overall compensation package. 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 Bredband2 i Skandinavien AB (publ)'s Growth Numbers

Bredband2 i Skandinavien AB (publ) has seen its earnings per share (EPS) increase by 10% a year over the past three years. Its revenue is up 9.4% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Bredband2 i Skandinavien AB (publ) Been A Good Investment?

With a total shareholder return of 10% over three years, Bredband2 i Skandinavien AB (publ) shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bredband2 i Skandinavien (free visualization of insider trades).

Important note: Bredband2 i Skandinavien 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.