Does NIBE Industrier AB (publ)'s (STO:NIBE B) CEO Pay Reflect Performance?
Gerteric Lindquist is the CEO of NIBE Industrier AB (publ) (STO:NIBE B). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for NIBE Industrier
How Does Gerteric Lindquist's Compensation Compare With Similar Sized Companies?
Our data indicates that NIBE Industrier AB (publ) is worth kr76b, and total annual CEO compensation was reported as kr6.3m for the year to December 2018. Notably, the salary of kr6.3m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from kr38b to kr114b, and the median CEO total compensation was kr8.4m.
That means Gerteric Lindquist receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at NIBE Industrier has changed from year to year.
Is NIBE Industrier AB (publ) Growing?
On average over the last three years, NIBE Industrier AB (publ) has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is up 16% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has NIBE Industrier AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with NIBE Industrier AB (publ) for providing a total return of 131% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Gerteric Lindquist is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at NIBE Industrier.
Important note: NIBE Industrier may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
