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How Should Investors React To Tobii AB (publ)'s (STO:TOBII) CEO Pay?

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Henrik Eskilsson became the CEO of Tobii AB (publ) (STO:TOBII) in 2001. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Tobii

How Does Henrik Eskilsson's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Tobii AB (publ) has a market cap of kr3.4b, and reported total annual CEO compensation of kr3.8m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at kr3.0m. When we examined a selection of companies with market caps ranging from kr2.0b to kr8.0b, we found the median CEO total compensation was kr5.2m.

So Henrik Eskilsson receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Tobii has changed over time.

OM:TOBII CEO Compensation, October 10th 2019
OM:TOBII CEO Compensation, October 10th 2019

Is Tobii AB (publ) Growing?

Tobii AB (publ) has reduced its earnings per share by an average of 31% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 27% over the last year.

Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has Tobii AB (publ) Been A Good Investment?

Given the total loss of 55% over three years, many shareholders in Tobii AB (publ) are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Henrik Eskilsson is paid around the same as most CEOs of similar size companies.

The company cannot boast particularly strong per share growth. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tobii.

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.