Magnus Brännström became the CEO of Oriflame Holding AG (STO:ORI) in 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Oriflame Holding
How Does Magnus Brännström’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Oriflame Holding AG has a market cap of kr11b, and is paying total annual CEO compensation of €5.6m. We note that’s an increase of 45% above last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €878m to €2.8b. The median total CEO compensation was €761k.
As you can see, Magnus Brännström is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Oriflame Holding AG is paying too much. 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 Oriflame Holding has changed over time.
Is Oriflame Holding AG Growing?
On average over the last three years, Oriflame Holding AG has grown earnings per share (EPS) by 39% each year. Its revenue is down -2.9% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Oriflame Holding AG Been A Good Investment?
I think that the total shareholder return of 68%, over three years, would leave most Oriflame Holding AG shareholders smiling. 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 Oriflame Holding AG 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. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate.
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.