In 2015 Pontus Lindwall was appointed CEO of Betsson AB (STO:BETS B). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Pontus Lindwall's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Betsson AB has a market cap of kr8.0b, and is paying total annual CEO compensation of kr9.7m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr5.5m. We looked at a group of companies with market capitalizations from kr3.8b to kr15b, and the median CEO total compensation was kr5.4m.
Thus we can conclude that Pontus Lindwall receives more in total compensation than the median of a group of companies in the same market, and of similar size to Betsson AB. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Betsson has changed over time.
Is Betsson AB Growing?
Over the last three years Betsson AB has grown its earnings per share (EPS) by an average of 9.8% per year (using a line of best fit). It achieved revenue growth of 9.6% over the last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Betsson AB Been A Good Investment?
Given the total loss of 29% over three years, many shareholders in Betsson AB are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Betsson AB pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Betsson 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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