Torbjörn Kronander became the CEO of Sectra AB (publ) (STO:SECT B) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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 Torbjörn Kronander's Compensation Compare With Similar Sized Companies?
Our data indicates that Sectra AB (publ) is worth kr14b, and total annual CEO compensation was reported as kr3.7m for the year to April 2019. We think total compensation is more important but we note that the CEO salary is lower, at kr2.5m. When we examined a selection of companies with market caps ranging from kr9.4b to kr30b, we found the median CEO total compensation was kr6.9m.
Most shareholders would consider it a positive that Torbjörn Kronander takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Sectra has changed over time.
Is Sectra AB (publ) Growing?
On average over the last three years, Sectra AB (publ) has grown earnings per share (EPS) by 12% each year (using a line of best fit). Its revenue is up 21% 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sectra AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with Sectra AB (publ) for providing a total return of 189% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It looks like Sectra AB (publ) pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Torbjörn Kronander deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Sectra shares (free trial).
If you want to buy a stock that is better than Sectra, 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 email@example.com. 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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