We Think HusCompagniet A/S' (CPH:HUSCO) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• HusCompagniet will host its Annual General Meeting on 11th of April
• Salary of kr.4.70m is part of CEO Martin Ravn-Nielsen's total remuneration
• The overall pay is 88% above the industry average
• HusCompagniet's three-year loss to shareholders was 54% while its EPS was down 96% over the past three years

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HusCompagniet A/S (CPH:HUSCO) has not performed well recently and CEO Martin Ravn-Nielsen will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 11th of April. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for HusCompagniet

Comparing HusCompagniet A/S' CEO Compensation With The Industry

According to our data, HusCompagniet A/S has a market capitalization of kr.1.0b, and paid its CEO total annual compensation worth kr.8.8m over the year to December 2024. Notably, that's an increase of 12% over the year before. We note that the salary of kr.4.70m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Denmark Consumer Durables industry with market capitalizations ranging from kr.682m to kr.2.7b, the reported median CEO total compensation was kr.4.7m. This suggests that Martin Ravn-Nielsen is paid more than the median for the industry. Furthermore, Martin Ravn-Nielsen directly owns kr.14m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr.4.7m	kr.4.2m	53%
Other	kr.4.1m	kr.3.7m	47%
Total Compensation	kr.8.8m	kr.7.9m	100%

On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. Although there is a difference in how total compensation is set, HusCompagniet more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

HusCompagniet A/S' Growth

HusCompagniet A/S has reduced its earnings per share by 96% a year over the last three years. In the last year, its revenue is down 3.5%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future .

Has HusCompagniet A/S Been A Good Investment?

With a total shareholder return of -54% over three years, HusCompagniet A/S shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

Shareholders may want to check for free if HusCompagniet insiders are buying or selling shares.

Switching gears from HusCompagniet, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.