In 2000 Lennart Jansson was appointed CEO of Firefly AB (publ) (STO:FIRE). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Lennart Jansson's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Firefly AB (publ) has a market cap of kr325m, and reported total annual CEO compensation of kr2.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at kr1.6m. 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.
That means Lennart Jansson receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Firefly has changed over time.
Is Firefly AB (publ) Growing?
Firefly AB (publ) has increased its earnings per share (EPS) by an average of 32% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Firefly AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with Firefly AB (publ) for providing a total return of 80% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Lennart Jansson is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Firefly (free visualization of insider trades).
If you want to buy a stock that is better than Firefly, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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