Knut Pedersen has been the CEO of Catella AB (publ) (STO:CAT B) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Knut Pedersen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Catella AB (publ) has a market cap of kr2.3b, and reported total annual CEO compensation of kr5.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr3.5m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of kr968m to kr3.9b. The median total CEO compensation was kr3.8m.
Thus we can conclude that Knut Pedersen receives more in total compensation than the median of a group of companies in the same market, and of similar size to Catella AB (publ). However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Catella has changed from year to year.
Is Catella AB (publ) Growing?
Over the last three years Catella AB (publ) has shrunk its earnings per share by an average of 39% per year (measured with a line of best fit). In the last year, its revenue is up 9.0%.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Catella AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with Catella AB (publ) for providing a total return of 48% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared total CEO remuneration at Catella AB (publ) with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. However, we can't argue with the strong returns to shareholders, over the same time period. So on this analysis we'd stop short of criticizing the level of CEO compensation. So you may want to check if insiders are buying Catella shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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