Does DistIT AB (publ)'s (STO:DIST) CEO Pay Reflect Performance?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Siamak Alian has been the CEO of DistIT AB (publ) (STO:DIST) since 2011. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for DistIT
How Does Siamak Alian's Compensation Compare With Similar Sized Companies?
According to our data, DistIT AB (publ) has a market capitalization of kr540m, and pays its CEO total annual compensation worth kr3.3m. (This number is for the twelve months until December 2018). That's less than last year. While we always look at total compensation first, we note that the salary component is less, at kr140k. We looked at a group of companies with market capitalizations under kr1.9b, and the median CEO total compensation was kr1.8m.
As you can see, Siamak Alian is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean DistIT 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, below, how CEO compensation at DistIT has changed over time.
Is DistIT AB (publ) Growing?
DistIT AB (publ) has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). It achieved revenue growth of 27% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has DistIT AB (publ) Been A Good Investment?
Most shareholders would probably be pleased with DistIT AB (publ) for providing a total return of 45% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We examined the amount DistIT AB (publ) pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. 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. Shareholders may want to check for free if DistIT insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
