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In 2014 Knut Pedersen was appointed CEO of Catella AB (publ) (STO:CAT B). 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Catella
How Does Knut Pedersen's Compensation Compare With Similar Sized Companies?
According to our data, Catella AB (publ) has a market capitalization of kr2.3b, and pays its CEO total annual compensation worth kr5.3m. (This number is for the twelve months until December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at kr3.5m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of kr928m to kr3.7b. The median total CEO compensation was kr3.2m.
As you can see, Knut Pedersen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Catella AB (publ) is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Catella, below.
Is Catella AB (publ) Growing?
Over the last three years Catella AB (publ) has shrunk its earnings per share by an average of 28% per year (measured with a line of best fit). It achieved revenue growth of 15% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Catella AB (publ) Been A Good Investment?
Boasting a total shareholder return of 63% over three years, Catella 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 compared total CEO remuneration at Catella AB (publ) with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.