In 2013 Peter Nilsson was appointed CEO of Bergs Timber AB (publ) (STO:BRG B). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Peter Nilsson's Compensation Compare With Similar Sized Companies?
According to our data, Bergs Timber AB (publ) has a market capitalization of kr884m, and paid its CEO total annual compensation worth kr5.5m over the year to August 2018. While we always look at total compensation first, we note that the salary component is less, at kr4.2m. We examined a group of similar sized companies, with market capitalizations of below kr1.9b. The median CEO total compensation in that group is kr2.3m.
As you can see, Peter Nilsson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bergs Timber AB (publ) is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Bergs Timber has changed from year to year.
Is Bergs Timber AB (publ) Growing?
Over the last three years Bergs Timber AB (publ) has grown its earnings per share (EPS) by an average of 68% per year (using a line of best fit). In the last year, its revenue is up 39%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bergs Timber AB (publ) Been A Good Investment?
With a total shareholder return of 17% over three years, Bergs Timber AB (publ) shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Bergs Timber AB (publ) with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Whatever your view on compensation, you might want to check if insiders are buying or selling Bergs Timber shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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