Here's Why Pandora A/S' (CPH:PNDORA) CEO May Have Their Pay Bumped Up

Shareholders will be pleased by the robust performance of Pandora A/S (CPH:PNDORA) recently and this will be kept in mind in the upcoming AGM on 10 March 2022. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for Pandora

Comparing Pandora A/S' CEO Compensation With the industry

According to our data, Pandora A/S has a market capitalization of kr.60b, and paid its CEO total annual compensation worth kr.34m over the year to December 2021. Notably, that's an increase of 19% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at kr.10m.

On comparing similar companies from the same industry with market caps ranging from kr.27b to kr.81b, we found that the median CEO total compensation was kr.53m. This suggests that Alexander Lacik is paid below the industry median. Furthermore, Alexander Lacik directly owns kr.103m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	kr.10m	kr.8.7m	31%
Other	kr.23m	kr.20m	69%
Total Compensation	kr.34m	kr.28m	100%

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Pandora sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Pandora A/S' Growth

Over the last three years, Pandora A/S has shrunk its earnings per share by 2.3% per year. In the last year, its revenue is up 23%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Pandora A/S Been A Good Investment?

Most shareholders would probably be pleased with Pandora A/S for providing a total return of 116% 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.

To Conclude...

The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Pandora that you should be aware of before investing.

Switching gears from Pandora, 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.