We Think Shareholders Will Probably Be Generous With Pandora A/S' (CPH:PNDORA) CEO Compensation

Key Insights

• Pandora will host its Annual General Meeting on 14th of March
• Total pay for CEO Alexander Lacik includes kr.11.4m salary
• The total compensation is similar to the average for the industry
• Pandora's EPS grew by 43% over the past three years while total shareholder return over the past three years was 83%

The performance at Pandora A/S (CPH:PNDORA) has been quite strong recently and CEO Alexander Lacik has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 14th of March. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Pandora

Comparing Pandora A/S' CEO Compensation With The Industry

At the time of writing, our data shows that Pandora A/S has a market capitalization of kr.93b, and reported total annual CEO compensation of kr.38m for the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at kr.11m.

On comparing similar companies in the Denmark Luxury industry with market capitalizations above kr.54b, we found that the median total CEO compensation was kr.52m. So it looks like Pandora compensates Alexander Lacik in line with the median for the industry. Moreover, Alexander Lacik also holds kr.292m worth of Pandora stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	kr.11m	kr.11m	30%
Other	kr.27m	kr.27m	70%
Total Compensation	kr.38m	kr.38m	100%

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. It's interesting to note that Pandora allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Pandora A/S' Growth

Pandora A/S's earnings per share (EPS) grew 43% per year over the last three years. Its revenue is up 6.3% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Pandora A/S Been A Good Investment?

We think that the total shareholder return of 83%, over three years, would leave most Pandora A/S shareholders smiling. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Pandora that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.