In This Article:
Jörgen Rosengren has been the CEO of Bufab AB (publ) (STO:BUFAB) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Bufab
How Does Jörgen Rosengren's Compensation Compare With Similar Sized Companies?
According to our data, Bufab AB (publ) has a market capitalization of kr3.9b, and pays its CEO total annual compensation worth kr7.0m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr4.0m. When we examined a selection of companies with market caps ranging from kr1.9b to kr7.7b, we found the median CEO total compensation was kr5.1m.
As you can see, Jörgen Rosengren is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bufab AB (publ) is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Bufab, below.
Is Bufab AB (publ) Growing?
On average over the last three years, Bufab AB (publ) has grown earnings per share (EPS) by 20% each year (using a line of best fit). Its revenue is up 16% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bufab AB (publ) Been A Good Investment?
Boasting a total shareholder return of 64% over three years, Bufab AB (publ) has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount Bufab AB (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.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bufab.