Mårten Hellberg became the CEO of OrganoClick AB (publ) (STO:ORGC) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mårten Hellberg's Compensation Compare With Similar Sized Companies?
Our data indicates that OrganoClick AB (publ) is worth kr387m, and total annual CEO compensation is kr1.5m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at kr1.2m. We examined a group of similar sized companies, with market capitalizations of below kr1.9b. The median CEO total compensation in that group is kr1.2m.
That means Mårten Hellberg 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 OrganoClick, below.
Is OrganoClick AB (publ) Growing?
On average over the last three years, OrganoClick AB (publ) has grown earnings per share (EPS) by 12% each year (using a line of best fit). In the last year, its revenue is up 9.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has OrganoClick AB (publ) Been A Good Investment?
Since shareholders would have lost about 16% over three years, some OrganoClick AB (publ) shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Remuneration for Mårten Hellberg is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at OrganoClick.
If you want to buy a stock that is better than OrganoClick, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.