Facts: Some figures from the study
The basic salary for a stock exchange CEO was SEK 4.4 million last year, calculated on the median (the middle value).
The total compensation, including bonuses and other things, was SEK 7.0 million in annual salary.
A board chairman received SEK 650,000 (median). Other board members received SEK 290,000.
The percentage of women in the CEO position decreased from 11.9 to 11.7 percent.
The proportion of female board chairpersons increased from 8.0 percent last year to 11.0 percent in 2023.
The proportion of women on the boards of listed companies increased at the same time from 33.0 to 35.0 percent. But looking over some time, not much has happened in the last 8-9 years.
Source: Novare Pay
Overall, the executive directors’ compensation, salary and bonuses and more increased by 4.8 percent last year to SEK 7.0 million (median salary), according to the consulting company Novare Pay’s annual review of all listed companies’ CEO compensation.
The fixed salary increased by six percent to SEK 4.4 million. It was a relatively high mark-up, more than what their employees received on average, just under three percent, according to the Mediation Institute.
“But there were real wage cuts even for the CEOs on average,” says Novare Pay CEO Erika Andersson.
Difficult to measure
The share of bonuses in the total salary landed at 37 percent last year. It’s a percentage that has increased over the years, even if there are some bumps. In 2017, that figure was 31 percent. But internationally, that level is still low.
“In Sweden, we have a high proportion of fixed salaries,” says Erika Andersson.
What do the bonus systems look like?
The sustainability goals have taken a significantly larger share of the bonus criteria. On the stock exchange’s large company list, almost every fourth company has sustainability goals in the directors’ incentive program, which is still lower than what generally applies in other countries, according to Andersson.
“The clearest trend is that they are increasing,” says Erika Andersson.
But the boards are not very good at following up on the goals.
“The reporting is often quite substandard,” she says.
It is often simply not possible to see what the director has received his bonus based on.
Can be zero
Another trend in recent years is that the bonus programs are to a reduced extent linked to the share price. When the rates yo-yo on the stock exchange, it can be jackpot or zero for the director. Then those programs will not be as attracted.
Instead, the programs have shifted more towards the companies’ operational goals, such as revenue and profit.
Overall, the long-term bonus programs have increased among listed companies over time, more than half of them now have them, the review of the spring general meetings shows.
“One reason could be that you want to keep the staff,” says Erika Andersson.