Shareholders May Be More Conservative With Columbus A/S' (CPH:COLUM) CEO Compensation For Now

Key Insights

• Columbus' Annual General Meeting to take place on 29th of April
• CEO Soren Knudsen's total compensation includes salary of kr.5.00m
• The total compensation is 133% higher than the average for the industry
• Over the past three years, Columbus' EPS grew by 9.1% and over the past three years, the total shareholder return was 30%

Our free stock report includes 1 warning sign investors should be aware of before investing in Columbus. Read for free now.

Under the guidance of CEO Soren Knudsen, Columbus A/S (CPH:COLUM) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of April. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Columbus

How Does Total Compensation For Soren Knudsen Compare With Other Companies In The Industry?

Our data indicates that Columbus A/S has a market capitalization of kr.1.5b, and total annual CEO compensation was reported as kr.8.7m for the year to December 2024. That's a notable increase of 58% on last year. We note that the salary of kr.5.00m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Denmark IT industry with market capitalizations ranging from kr.648m to kr.2.6b, the reported median CEO total compensation was kr.3.7m. This suggests that Soren Knudsen is paid more than the median for the industry. What's more, Soren Knudsen holds kr.5.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr.5.0m	kr.4.5m	58%
Other	kr.3.7m	kr.988k	42%
Total Compensation	kr.8.7m	kr.5.5m	100%

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. Columbus sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Columbus A/S' Growth

Columbus A/S has seen its earnings per share (EPS) increase by 9.1% a year over the past three years. Its revenue is up 7.8% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Columbus A/S Been A Good Investment?

Columbus A/S has served shareholders reasonably well, with a total return of 30% 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Columbus that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.