Johan Menckel has been the CEO of Gränges AB (publ) (STO:GRNG) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Gränges

How Does Johan Menckel’s Compensation Compare With Similar Sized Companies?

According to our data, Gränges AB (publ) has a market capitalization of kr6.0b, and pays its CEO total annual compensation worth kr11m. (This number is for the twelve months until 2016). We think total compensation is more important but we note that the CEO salary is lower, at kr4.5m. We examined companies with market caps from kr3.6b to kr14b, and discovered that the median CEO compensation of that group was kr5.6m.

Thus we can conclude that Johan Menckel receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gränges AB (publ). However, this doesn’t necessarily mean the pay is too high. 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, below, how CEO compensation at Gränges has changed over time.

Is Gränges AB (publ) Growing?

Gränges AB (publ) has increased its earnings per share (EPS) by an average of 23% a year, over the last three years In the last year, its revenue is up 12%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Gränges AB (publ) Been A Good Investment?

Gränges AB (publ) has served shareholders reasonably well, with a total return of 30% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We compared the total CEO remuneration paid by Gränges AB (publ), and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Gränges.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.