Stock Analysis

We Take A Look At Why Brødrene Hartmann A/S' (CPH:HART) CEO Compensation Is Well Earned

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CPSE:HART
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We have been pretty impressed with the performance at Brødrene Hartmann A/S (CPH:HART) recently and CEO Torben Rosenkrantz-Theil deserves a mention for their role in it. Coming up to the next AGM on 27 April 2021, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Brødrene Hartmann

Comparing Brødrene Hartmann A/S' CEO Compensation With the industry

Our data indicates that Brødrene Hartmann A/S has a market capitalization of kr.3.8b, and total annual CEO compensation was reported as kr.6.1m for the year to December 2020. That's a fairly small increase of 5.2% over the previous year. In particular, the salary of kr.3.80m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between kr.2.5b and kr.9.9b had a median total CEO compensation of kr.6.1m. So it looks like Brødrene Hartmann compensates Torben Rosenkrantz-Theil in line with the median for the industry.

Component20202019Proportion (2020)
Salary kr.3.8m kr.3.6m 62%
Other kr.2.3m kr.2.2m 38%
Total Compensationkr.6.1m kr.5.8m100%

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. Our data reveals that Brødrene Hartmann allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
CPSE:HART CEO Compensation April 21st 2021

A Look at Brødrene Hartmann A/S' Growth Numbers

Over the past three years, Brødrene Hartmann A/S has seen its earnings per share (EPS) grow by 31% per year. It achieved revenue growth of 8.9% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Brødrene Hartmann A/S Been A Good Investment?

We think that the total shareholder return of 66%, over three years, would leave most Brødrene Hartmann A/S shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 Brødrene Hartmann that you should be aware of before investing.

Important note: Brødrene Hartmann 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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