In 2013 Staffan Strömberg was appointed CEO of Infant Bacterial Therapeutics AB (publ) (STO:IBT B). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Staffan Strömberg's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Infant Bacterial Therapeutics AB (publ) has a market cap of kr1.6b, and reported total annual CEO compensation of kr3.3m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at kr2.1m. When we examined a selection of companies with market caps ranging from kr953m to kr3.8b, we found the median CEO total compensation was kr2.9m.
That means Staffan Strömberg receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Infant Bacterial Therapeutics has changed from year to year.
Is Infant Bacterial Therapeutics AB (publ) Growing?
Infant Bacterial Therapeutics AB (publ) has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). In the last year, its revenue has collapsed effectively to zero.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Infant Bacterial Therapeutics AB (publ) Been A Good Investment?
I think that the total shareholder return of 264%, over three years, would leave most Infant Bacterial Therapeutics AB (publ) shareholders smiling. 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.
Staffan Strömberg is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Infant Bacterial Therapeutics shares (free trial).
If you want to buy a stock that is better than Infant Bacterial Therapeutics, this free list of high return, low debt companies is a great place to look.
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