In This Article:
In 2010 Magnus Welander was appointed CEO of Thule Group AB (publ) (STO:THULE). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Thule Group
How Does Magnus Welander’s Compensation Compare With Similar Sized Companies?
According to our data, Thule Group AB (publ) has a market capitalization of kr18b, and pays its CEO total annual compensation worth kr15m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at kr7.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of kr9.1b to kr29b. The median total CEO compensation was kr7.7m.
As you can see, Magnus Welander is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Thule Group AB (publ) is paying too much. 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 Thule Group, below.
Is Thule Group AB (publ) Growing?
On average over the last three years, Thule Group AB (publ) has grown earnings per share (EPS) by 10% each year. It achieved revenue growth of 8.3% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Thule Group AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with Thule Group AB (publ) for providing a total return of 70% over three years. 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 compared total CEO remuneration at Thule Group AB (publ) with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Thule Group shares with their own money (free access).