The CEO of ScandBook Holding AB (publ) (STO:SBOK) is Håvard Grjotheim. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Håvard Grjotheim's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that ScandBook Holding AB (publ) has a market cap of kr67m, and reported total annual CEO compensation of kr799k for the year to December 2018. Notably, the salary of kr799k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below kr1.9b. The median CEO total compensation in that group is kr2.2m.
Most shareholders would consider it a positive that Håvard Grjotheim 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.
The graphic below shows how CEO compensation at ScandBook Holding has changed from year to year.
Is ScandBook Holding AB (publ) Growing?
Over the last three years ScandBook Holding AB (publ) has grown its earnings per share (EPS) by an average of 85% per year (using a line of best fit). In the last year, its revenue changed by just 0.3%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has ScandBook Holding AB (publ) Been A Good Investment?
ScandBook Holding AB (publ) has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It appears that ScandBook Holding AB (publ) remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Håvard Grjotheim is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. So you may want to check if insiders are buying ScandBook Holding shares with their own money (free access).
If you want to buy a stock that is better than ScandBook Holding, this free list of high return, low debt companies is a great place to look.
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