In 2011 Magnus Håkansson was appointed CEO of RNB Retail and Brands AB (publ) (STO:RNBS). 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for RNB Retail and Brands

How Does Magnus Håkansson's Compensation Compare With Similar Sized Companies?

Our data indicates that RNB Retail and Brands AB (publ) is worth kr46m, and total annual CEO compensation was reported as kr5.7m for the year to August 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr4.3m. We took a group of companies with market capitalizations below kr2.0b, and calculated the median CEO total compensation to be kr1.2m.

It would therefore appear that RNB Retail and Brands AB (publ) pays Magnus Håkansson more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at RNB Retail and Brands, below.

Is RNB Retail and Brands AB (publ) Growing?

Over the last three years RNB Retail and Brands AB (publ) has shrunk its earnings per share by an average of 97% per year (measured with a line of best fit). In the last year, its revenue is up 1.2%.

Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has RNB Retail and Brands AB (publ) Been A Good Investment?

With a three year total loss of 87%, RNB Retail and Brands AB (publ) would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared the total CEO remuneration paid by RNB Retail and Brands AB (publ), and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! So you may want to check if insiders are buying RNB Retail and Brands shares with their own money (free access).

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.