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Is Modern Times Group Mtg AB's (STO:MTG B) CEO Being Overpaid?

Simply Wall St

In 2012 Jørgen Lindemann was appointed CEO of Modern Times Group Mtg AB (STO:MTG B). First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Modern Times Group Mtg

How Does Jørgen Lindemann's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Modern Times Group Mtg AB has a market cap of kr7.0b, and reported total annual CEO compensation of kr23m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at kr12m. We looked at a group of companies with market capitalizations from kr3.8b to kr15b, and the median CEO total compensation was kr5.6m.

As you can see, Jørgen Lindemann is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Modern Times Group Mtg AB is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Modern Times Group Mtg, below.

OM:MTG B CEO Compensation, December 4th 2019

Is Modern Times Group Mtg AB Growing?

On average over the last three years, Modern Times Group Mtg AB has grown earnings per share (EPS) by 10% each year (using a line of best fit). In the last year, its revenue is up 141%.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.

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 35% 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 compared total CEO remuneration at Modern Times Group Mtg AB with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark 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. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Modern Times Group Mtg insiders are buying or selling shares.

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.

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.

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. Thank you for reading.