Should Shareholders Reconsider Jetpak Top Holding AB (publ)'s (STO:JETPAK) CEO Compensation Package?

Key Insights

• Jetpak Top Holding to hold its Annual General Meeting on 11th of June
• CEO Kenneth Marx's total compensation includes salary of kr4.22m
• The overall pay is 348% above the industry average
• Over the past three years, Jetpak Top Holding's EPS fell by 18% and over the past three years, the total loss to shareholders 23%

Jetpak Top Holding AB (publ) (STO:JETPAK) has not performed well recently and CEO Kenneth Marx will probably need to up their game. At the upcoming AGM on 11th of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Jetpak Top Holding

Comparing Jetpak Top Holding AB (publ)'s CEO Compensation With The Industry

At the time of writing, our data shows that Jetpak Top Holding AB (publ) has a market capitalization of kr1.1b, and reported total annual CEO compensation of kr6.3m for the year to December 2023. Notably, that's a decrease of 29% over the year before. We note that the salary portion, which stands at kr4.22m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Sweden Logistics industry with market capitalizations below kr2.1b, reported a median total CEO compensation of kr1.4m. Hence, we can conclude that Kenneth Marx is remunerated higher than the industry median. Furthermore, Kenneth Marx directly owns kr9.9m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	kr4.2m	kr3.6m	67%
Other	kr2.1m	kr5.2m	33%
Total Compensation	kr6.3m	kr8.8m	100%

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. Jetpak Top Holding is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

Jetpak Top Holding AB (publ)'s Growth

Over the last three years, Jetpak Top Holding AB (publ) has shrunk its earnings per share by 18% per year. Its revenue is down 7.4% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Jetpak Top Holding AB (publ) Been A Good Investment?

Given the total shareholder loss of 23% over three years, many shareholders in Jetpak Top Holding AB (publ) are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Jetpak Top Holding that investors should think about before committing capital to this stock.

Switching gears from Jetpak Top Holding, 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. 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.