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Does Camurus AB (publ)'s (STO:CAMX) CEO Pay Reflect Performance?

Fredrik Tiberg became the CEO of Camurus AB (publ) (STO:CAMX) in 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Camurus

How Does Fredrik Tiberg's Compensation Compare With Similar Sized Companies?

Our data indicates that Camurus AB (publ) is worth kr6.4b, and total annual CEO compensation was reported as kr8.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at kr4.9m. We looked at a group of companies with market capitalizations from kr3.9b to kr16b, and the median CEO total compensation was kr8.1m.

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Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Camurus. Talking in terms of the sector, salary represented approximately 68% of total compensation out of all the companies we analysed, while other remuneration made up 32% of the pie. So it seems like there isn't a significant difference between Camurus and the broader market, in terms of salary allocation in the overall compensation package.

So Fredrik Tiberg receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Camurus has changed over time.

OM:CAMX CEO Compensation May 5th 2020
OM:CAMX CEO Compensation May 5th 2020

Is Camurus AB (publ) Growing?

Over the last three years Camurus AB (publ) has shrunk its earnings per share by an average of 30% per year (measured with a line of best fit). Its revenue is up 114% over 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. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.

Has Camurus AB (publ) Been A Good Investment?

With a total shareholder return of 13% over three years, Camurus AB (publ) shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Remuneration for Fredrik Tiberg is close enough to the median pay for a CEO of a similar sized company .

We think many would like to see better growth. While the CEO may not be underpaid, we don't think the pay is too generous either. Moving away from CEO compensation for the moment, we've identified 3 warning signs for Camurus that you should be aware of before investing.

If you want to buy a stock that is better than Camurus, 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.