Yahoo Finance Does AB Electrolux (publ)'s (STO:ELUX B) CEO Pay Matter?
Jonas Samuelson became the CEO of AB Electrolux (publ) (STO:ELUX B) in 2016. 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.
View our latest analysis for AB Electrolux
How Does Jonas Samuelson's Compensation Compare With Similar Sized Companies?
According to our data, AB Electrolux (publ) has a market capitalization of kr62b, and pays its CEO total annual compensation worth kr32m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at kr11m. When we examined a selection of companies with market caps ranging from kr39b to kr116b, we found the median CEO total compensation was kr16m.
It would therefore appear that AB Electrolux (publ) pays Jonas Samuelson 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at AB Electrolux has changed from year to year.
Is AB Electrolux (publ) Growing?
AB Electrolux (publ) has increased its earnings per share (EPS) by an average of 3.3% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.5%.
I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.
Has AB Electrolux (publ) Been A Good Investment?
AB Electrolux (publ) has not done too badly by shareholders, with a total return of 1.4%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We examined the amount AB Electrolux (publ) 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.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. So you may want to check if insiders are buying AB Electrolux shares with their own money (free access).
Important note: AB Electrolux may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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