What Can We Conclude About Tryg's (CPH:TRYG) CEO Pay?

Morten Hubbe has been the CEO of Tryg A/S (CPH:TRYG) since 2011, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Tryg pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Tryg

How Does Total Compensation For Morten Hubbe Compare With Other Companies In The Industry?

Our data indicates that Tryg A/S has a market capitalization of kr.59b, and total annual CEO compensation was reported as kr.21m for the year to December 2020. That's a notable increase of 44% on last year. Notably, the salary which is kr.11.8m, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between kr.25b and kr.74b, we discovered that the median CEO total compensation of that group was kr.16m. This suggests that Morten Hubbe is paid more than the median for the industry. Moreover, Morten Hubbe also holds kr.45m worth of Tryg stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. Tryg pays out 57% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Tryg A/S' Growth

Tryg A/S saw earnings per share stay pretty flat over the last three years. It achieved revenue growth of 2.2% over the last year.

We'd prefer higher revenue growth, 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Tryg A/S Been A Good Investment?

Most shareholders would probably be pleased with Tryg A/S for providing a total return of 62% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we noted earlier, Tryg pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But shareholder returns have been positive for the last three years. That's why we were hoping EPS growth would match this growth, but sadly that is not the case. We'd ideally want to see higher EPS growth, but CEO compensation seems to be within reason, given high shareholder returns.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Tryg that investors should be aware of in a dynamic business environment.

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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