In 2001 Søren Mortensen was appointed CEO of Alm. Brand A/S (CPH:ALMB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Søren Mortensen’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Alm. Brand A/S has a market cap of ø10b, and is paying total annual CEO compensation of ø9.7m. (This figure is for the year to December 2018). Notably, that’s an increase of 8.4% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at ø6.6m. We looked at a group of companies with market capitalizations from ø6.7b to ø21b, and the median CEO total compensation was ø8.0m.
That means Søren Mortensen receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Alm. Brand has changed over time.
Is Alm. Brand A/S Growing?
On average over the last three years, Alm. Brand A/S has shrunk earnings per share by 3.3% each year (measured with a line of best fit). Revenue was pretty flat on last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Alm. Brand A/S Been A Good Investment?
Most shareholders would probably be pleased with Alm. Brand A/S for providing a total return of 45% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Søren Mortensen is close enough to the median pay for a CEO of a similar sized company .
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Shareholders may want to check for free if Alm. Brand insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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.