Is GWS Production AB (publ) (STO:GWS) Overpaying Its CEO?

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Andreas Rodman became the CEO of GWS Production AB (publ) (STO:GWS) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for GWS Production

How Does Andreas Rodman's Compensation Compare With Similar Sized Companies?

Our data indicates that GWS Production AB (publ) is worth kr139m, and total annual CEO compensation is kr1.3m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr843k. We looked at a group of companies with market capitalizations under kr1.9b, and the median CEO total compensation was kr1.8m.

So Andreas Rodman is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at GWS Production has changed from year to year.

OM:GWS CEO Compensation, June 10th 2019
OM:GWS CEO Compensation, June 10th 2019

Is GWS Production AB (publ) Growing?

Over the last three years GWS Production AB (publ) has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). It achieved revenue growth of 18% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has GWS Production AB (publ) Been A Good Investment?

With a three year total loss of 40%, GWS Production AB (publ) would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Andreas Rodman is paid around the same as most CEOs of similar size companies.

We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at GWS Production.