How Should Investors Feel About Modern Times Group Mtg AB's (STO:MTG B) CEO Pay?
In 2012 Jørgen Lindemann was appointed CEO of Modern Times Group Mtg AB (STO:MTG B). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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See our latest analysis for Modern Times Group Mtg
How Does Jørgen Lindemann's Compensation Compare With Similar Sized Companies?
Our data indicates that Modern Times Group Mtg AB is worth kr7.9b, and total annual CEO compensation is kr23m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr11m. We looked at a group of companies with market capitalizations from kr3.9b to kr15b, and the median CEO total compensation was kr5.5m.
It would therefore appear that Modern Times Group Mtg AB pays Jørgen Lindemann more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Modern Times Group Mtg has changed from year to year.
Is Modern Times Group Mtg AB Growing?
Modern Times Group Mtg AB has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). Its revenue is up 34% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Modern Times Group Mtg AB Been A Good Investment?
Most shareholders would probably be pleased with Modern Times Group Mtg AB for providing a total return of 61% 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.
In Summary...
We examined the amount Modern Times Group Mtg AB pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Modern Times Group Mtg shares with their own money (free access).
If you want to buy a stock that is better than Modern Times Group Mtg, this free list of high return, low debt companies is a great place to look.
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.
