We Think Shareholders May Want To Consider A Review Of Gigasun AB (publ)'s (STO:GIGA) CEO Compensation Package

Key Insights

• Gigasun to hold its Annual General Meeting on 21st of May
• CEO Max Metelius' total compensation includes salary of kr2.06m
• The total compensation is similar to the average for the industry
• Over the past three years, Gigasun's EPS fell by 42% and over the past three years, the total loss to shareholders 88%

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Gigasun AB (publ) (STO:GIGA) has not performed well recently and CEO Max Metelius will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 21st of May. 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.

See our latest analysis for Gigasun

How Does Total Compensation For Max Metelius Compare With Other Companies In The Industry?

According to our data, Gigasun AB (publ) has a market capitalization of kr170m, and paid its CEO total annual compensation worth kr2.7m over the year to December 2024. We note that's a decrease of 40% compared to last year. Notably, the salary which is kr2.06m, represents most of the total compensation being paid.

In comparison with other companies in the Sweden Renewable Energy industry with market capitalizations under kr2.0b, the reported median total CEO compensation was kr3.8m. So it looks like Gigasun compensates Max Metelius in line with the median for the industry.

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. Gigasun pays out 76% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Gigasun AB (publ)'s Growth

Over the last three years, Gigasun AB (publ) has shrunk its earnings per share by 42% per year. In the last year, its revenue is up 3.6%.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Gigasun AB (publ) Been A Good Investment?

The return of -88% over three years would not have pleased Gigasun AB (publ) shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Gigasun we think you should know about.

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.