Is Systemair AB (publ) (STO:SYSR) Excessively Paying Its CEO?
Roland Kasper became the CEO of Systemair AB (publ) (STO:SYSR) in 2015. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Systemair
How Does Roland Kasper's Compensation Compare With Similar Sized Companies?
Our data indicates that Systemair AB (publ) is worth kr6.3b, and total annual CEO compensation was reported as kr4.3m for the year to April 2019. We think total compensation is more important but we note that the CEO salary is lower, at kr3.6m. We examined companies with market caps from kr4.1b to kr16b, and discovered that the median CEO total compensation of that group was kr7.6m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Systemair. On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. Systemair pays out 84% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see, below, how CEO compensation at Systemair has changed over time.
Is Systemair AB (publ) Growing?
Systemair AB (publ) has seen earnings per share (EPS) move positively by an average of 18% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.
This demonstrates that the company has been improving recently. A good result. 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 Systemair AB (publ) Been A Good Investment?
Given the total loss of 14% over three years, many shareholders in Systemair AB (publ) are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Systemair AB (publ) is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Roland Kasper receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. On another note, we've spotted 2 warning signs for Systemair that investors should look into moving forward.
If you want to buy a stock that is better than Systemair, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
