In This Article:
Morten Falkenberg has been the CEO of Nobia AB (publ) (STO:NOBI) since 2010. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Nobia
How Does Morten Falkenberg's Compensation Compare With Similar Sized Companies?
According to our data, Nobia AB (publ) has a market capitalization of kr10b, and pays its CEO total annual compensation worth kr10m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at kr7.8m. When we examined a selection of companies with market caps ranging from kr3.8b to kr15b, we found the median CEO total compensation was kr5.6m.
Thus we can conclude that Morten Falkenberg receives more in total compensation than the median of a group of companies in the same market, and of similar size to Nobia AB (publ). However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Nobia has changed from year to year.
Is Nobia AB (publ) Growing?
Nobia AB (publ) has reduced its earnings per share by an average of 7.6% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 8.3%.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Nobia AB (publ) Been A Good Investment?
Since shareholders would have lost about 11% over three years, some Nobia 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...
We compared total CEO remuneration at Nobia AB (publ) with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.