Does Sectra AB (publ)'s (STO:SECT B) CEO Pay Matter?
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Torbjörn Kronander became the CEO of Sectra AB (publ) (STO:SECT B) in 2012. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Sectra
How Does Torbjörn Kronander's Compensation Compare With Similar Sized Companies?
According to our data, Sectra AB (publ) has a market capitalization of kr13b, and pays its CEO total annual compensation worth kr3.7m. (This number is for the twelve months until April 2019). That's a fairly small increase of 4.0% on year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr2.5m. When we examined a selection of companies with market caps ranging from kr9.3b to kr30b, we found the median CEO total compensation was kr7.8m.
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 19% each year (using a line of best fit). Its revenue is up 17% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
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. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Sectra AB (publ) is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Torbjörn Kronander deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sectra.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.
