In 2016 Richard Hausmann was appointed CEO of Elekta AB (publ) (STO:EKTA 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Richard Hausmann's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Elekta AB (publ) has a market cap of kr47b, and reported total annual CEO compensation of kr15m for the year to April 2018. We think total compensation is more important but we note that the CEO salary is lower, at kr6.7m. When we examined a selection of companies with market caps ranging from kr39b to kr118b, we found the median CEO total compensation was kr15m.
That means Richard Hausmann receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Elekta, below.
Is Elekta AB (publ) Growing?
On average over the last three years, Elekta AB (publ) has grown earnings per share (EPS) by 62% each year (using a line of best fit). In the last year, its revenue is up 17%.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Elekta AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with Elekta AB (publ) for providing a total return of 59% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Richard Hausmann is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Elekta 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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