Why LeoVegas AB (publ)'s (STO:LEO) CEO Pay Matters To You
In 2015 Gustaf Hagman was appointed CEO of LeoVegas AB (publ) (STO:LEO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for LeoVegas
How Does Gustaf Hagman's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that LeoVegas AB (publ) has a market cap of kr3.1b, and reported total annual CEO compensation of €358k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €264k. We looked at a group of companies with market capitalizations from €184m to €735m, and the median CEO total compensation was €504k.
That means Gustaf Hagman receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at LeoVegas has changed over time.
Is LeoVegas AB (publ) Growing?
On average over the last three years, LeoVegas AB (publ) has grown earnings per share (EPS) by 15% each year (using a line of best fit). Its revenue is up 8.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has LeoVegas AB (publ) Been A Good Investment?
Since shareholders would have lost about 18% over three years, some LeoVegas AB (publ) shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Gustaf Hagman is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but we find the returns over the last three years to be lacking. 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. So you may want to check if insiders are buying LeoVegas shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.
