Shareholders Will Most Likely Find Carlsberg A/S' (CPH:CARL B) CEO Compensation Acceptable

Under the guidance of CEO Cees ´t Hart, Carlsberg A/S (CPH:CARL B) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14 March 2022. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Carlsberg

Comparing Carlsberg A/S' CEO Compensation With the industry

Our data indicates that Carlsberg A/S has a market capitalization of kr.117b, and total annual CEO compensation was reported as kr.47m for the year to December 2021. Notably, that's an increase of 17% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at kr.13m.

On comparing similar companies in the industry with market capitalizations above kr.55b, we found that the median total CEO compensation was kr.50m. So it looks like Carlsberg compensates Cees ´t Hart in line with the median for the industry. What's more, Cees ´t Hart holds kr.22m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. Carlsberg pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Carlsberg A/S' Growth Numbers

Carlsberg A/S has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 14%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Carlsberg A/S Been A Good Investment?

With a total shareholder return of 6.2% over three years, Carlsberg A/S has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Carlsberg that you should be aware of before investing.

Important note: Carlsberg is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.