Does NNIT A/S's (CPH:NNIT) CEO Pay Compare Well With Peers?

Per Kogut became the CEO of NNIT A/S (CPH:NNIT) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for NNIT

How Does Per Kogut's Compensation Compare With Similar Sized Companies?

According to our data, NNIT A/S has a market capitalization of ø4.4b, and pays its CEO total annual compensation worth ø12m. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at ø3.8m. We examined companies with market caps from ø2.7b to ø11b, and discovered that the median CEO compensation of that group was ø6.0m.

Thus we can conclude that Per Kogut receives more in total compensation than the median of a group of companies in the same market, and of similar size to NNIT A/S. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at NNIT, below.

Is NNIT A/S Growing?

Over the last three years NNIT A/S has grown its earnings per share (EPS) by an average of 2.5% per year (using a line of best fit). In the last year, its revenue is up 4.0%.

I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.

Has NNIT A/S Been A Good Investment?

NNIT A/S has served shareholders reasonably well, with a total return of 14% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared the total CEO remuneration paid by NNIT A/S, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. Whatever your view on compensation, you might want to check if insiders are buying or selling NNIT shares (free trial).

Important note: NNIT may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.