Simon Grant has been the CEO of SciBase Holding AB (publ) (STO:SCIB) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Simon Grant's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that SciBase Holding AB (publ) has a market cap of kr67m, and reported total annual CEO compensation of kr1.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr1.1m. We took a group of companies with market capitalizations below kr1.9b, and calculated the median CEO total compensation to be kr2.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at SciBase Holding has changed from year to year.
Is SciBase Holding AB (publ) Growing?
Over the last three years SciBase Holding AB (publ) has grown its earnings per share (EPS) by an average of 37% per year (using a line of best fit). Its revenue is up 26% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has SciBase Holding AB (publ) Been A Good Investment?
Since shareholders would have lost about 80% over three years, some SciBase Holding AB (publ) shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It looks like SciBase Holding AB (publ) pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Simon Grant receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Whatever your view on compensation, you might want to check if insiders are buying or selling SciBase Holding shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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