Does Kancera AB (publ)'s (STO:KAN) CEO Pay Matter?
Thomas Olin is the CEO of Kancera AB (publ) (STO:KAN). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Kancera
How Does Thomas Olin's Compensation Compare With Similar Sized Companies?
According to our data, Kancera AB (publ) has a market capitalization of kr125m, and paid its CEO total annual compensation worth kr2.1m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at kr1.8m. We took a group of companies with market capitalizations below kr1.9b, and calculated the median CEO total compensation to be kr2.2m.
So Thomas Olin receives a similar amount to the median CEO pay, amongst 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.
You can see, below, how CEO compensation at Kancera has changed over time.
Is Kancera AB (publ) Growing?
Over the last three years, Kancera AB (publ) has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. In the last year, its revenue is up 3942%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Kancera AB (publ) Been A Good Investment?
With a three year total loss of 76%, Kancera AB (publ) would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Thomas Olin is paid around the same as most CEOs of similar size companies.
We would like to see somewhat stronger per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. So you may want to check if insiders are buying Kancera shares with their own money (free access).
Important note: Kancera may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
