We Think Some Shareholders May Hesitate To Increase Carlsberg A/S' (CPH:CARL B) CEO Compensation

CEO Cees ´t Hart has done a decent job of delivering relatively good performance at Carlsberg A/S (CPH:CARL B) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15 March 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Carlsberg

How Does Total Compensation For Cees ´t Hart Compare With Other Companies In The Industry?

At the time of writing, our data shows that Carlsberg A/S has a market capitalization of kr.149b, and reported total annual CEO compensation of kr.37m for the year to December 2020. We note that's a decrease of 25% compared to last year. 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.50b, we found that the median total CEO compensation was kr.21m. Accordingly, our analysis reveals that Carlsberg A/S pays Cees ´t Hart north of the industry median. Moreover, Cees ´t Hart also holds kr.28m worth of Carlsberg stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	kr.13m	kr.13m	35%
Other	kr.24m	kr.37m	65%
Total Compensation	kr.37m	kr.50m	100%

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. It's interesting to note that Carlsberg 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.

A Look at Carlsberg A/S' Growth Numbers

Carlsberg A/S's earnings per share (EPS) grew 71% per year over the last three years. It saw its revenue drop 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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?

Most shareholders would probably be pleased with Carlsberg A/S for providing a total return of 45% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Carlsberg 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. 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.
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