Isabelle Valerie Ducellier is the CEO of BioGaia AB (publ) (STO:BIOG B). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for BioGaia

How Does Isabelle Valerie Ducellier's Compensation Compare With Similar Sized Companies?

Our data indicates that BioGaia AB (publ) is worth kr6.9b, and total annual CEO compensation was reported as kr3.5m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at kr427k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from kr3.8b to kr15b, and the median CEO total compensation was kr5.5m.

A first glance this seems like a real positive for shareholders, since Isabelle Valerie Ducellier is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at BioGaia, below.

Is BioGaia AB (publ) Growing?

On average over the last three years, BioGaia AB (publ) has grown earnings per share (EPS) by 11% each year (using a line of best fit). It achieved revenue growth of 9.7% over the last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.

Has BioGaia AB (publ) Been A Good Investment?

Most shareholders would probably be pleased with BioGaia AB (publ) for providing a total return of 44% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It appears that BioGaia AB (publ) remunerates its CEO below most similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Isabelle Valerie Ducellier deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling BioGaia (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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