In This Article:
In 2008 Ingrid Nordlund was appointed CEO of NGS Group AB (publ) (STO:NGS). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for NGS Group
How Does Ingrid Nordlund’s Compensation Compare With Similar Sized Companies?
According to our data, NGS Group AB (publ) has a market capitalization of kr199m, and pays its CEO total annual compensation worth kr3.5m. We note that’s an increase of 15% above last year. We examined a group of similar sized companies, with market capitalizations of below kr1.8b. The median CEO compensation in that group is kr1.8m.
It would therefore appear that NGS Group AB (publ) pays Ingrid Nordlund 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.
You can see, below, how CEO compensation at NGS Group has changed over time.
Is NGS Group AB (publ) Growing?
NGS Group AB (publ) has increased its earnings per share (EPS) by an average of 12% a year, over the last three years Revenue was pretty flat on last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has NGS Group AB (publ) Been A Good Investment?
Since shareholders would have lost about 34% over three years, some NGS Group AB (publ) shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We examined the amount NGS Group AB (publ) pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation.