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Is Coor Service Management Holding AB (publ) (STO:COOR) Overpaying Its CEO?

In This Article:

Mikael Stöhr has been the CEO of Coor Service Management Holding AB (publ) (STO:COOR) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

See our latest analysis for Coor Service Management Holding

How Does Mikael Stöhr’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Coor Service Management Holding AB (publ) has a market cap of kr6.7b, and is paying total annual CEO compensation of kr13m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at kr6.4m. When we examined a selection of companies with market caps ranging from kr3.6b to kr14b, we found the median CEO compensation was kr5.6m.

Thus we can conclude that Mikael Stöhr receives more in total compensation than the median of a group of companies in the same market, and of similar size to Coor Service Management Holding AB (publ). However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Coor Service Management Holding, below.

OM:COOR CEO Compensation January 6th 19
OM:COOR CEO Compensation January 6th 19

Is Coor Service Management Holding AB (publ) Growing?

On average over the last three years, Coor Service Management Holding AB (publ) has shrunk earnings per share by 4.6% each year. Its revenue is up 19% over last year.

Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Coor Service Management Holding AB (publ) Been A Good Investment?

Boasting a total shareholder return of 123% over three years, Coor Service Management Holding AB (publ) has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

We examined the amount Coor Service Management Holding AB (publ) 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.