In This Article:
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The CEO of Malmbergs Elektriska AB (publ) (STO:MEAB B) is Johan Folke. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Malmbergs Elektriska
How Does Johan Folke's Compensation Compare With Similar Sized Companies?
According to our data, Malmbergs Elektriska AB (publ) has a market capitalization of kr501m, and pays its CEO total annual compensation worth kr1.6m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at kr1.1m. We examined a group of similar sized companies, with market capitalizations of below kr1.9b. The median CEO total compensation in that group is kr1.8m.
That means Johan Folke receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Malmbergs Elektriska has changed from year to year.
Is Malmbergs Elektriska AB (publ) Growing?
On average over the last three years, Malmbergs Elektriska AB (publ) has shrunk earnings per share by 25% each year (measured with a line of best fit). Its revenue is down -4.6% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Malmbergs Elektriska AB (publ) Been A Good Investment?
Since shareholders would have lost about 52% over three years, some Malmbergs Elektriska AB (publ) shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Johan Folke is paid around what is normal the leaders of comparable size companies.