Here's Why Shareholders Should Examine Trifork Group AG's (CPH:TRIFOR) CEO Compensation Package More Closely

Key Insights

• Trifork Group will host its Annual General Meeting on 15th of April
• Salary of €737.2k is part of CEO Jorn Larsen's total remuneration
• Total compensation is 143% above industry average
• Trifork Group's three-year loss to shareholders was 54% while its EPS was down 18% over the past three years

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Trifork Group AG (CPH:TRIFOR) has not performed well recently and CEO Jorn Larsen will probably need to up their game. At the upcoming AGM on 15th of April, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Trifork Group

Comparing Trifork Group AG's CEO Compensation With The Industry

Our data indicates that Trifork Group AG has a market capitalization of kr.1.6b, and total annual CEO compensation was reported as €1.5m for the year to December 2024. That's a notable decrease of 25% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €737k.

On comparing similar companies from the Denmark IT industry with market caps ranging from kr.682m to kr.2.7b, we found that the median CEO total compensation was €614k. This suggests that Jorn Larsen is paid more than the median for the industry. What's more, Jorn Larsen holds kr.314m 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	€737k	€759k	49%
Other	€755k	€1.2m	51%
Total Compensation	€1.5m	€2.0m	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. It's interesting to note that Trifork Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Trifork Group AG's Growth

Over the last three years, Trifork Group AG has shrunk its earnings per share by 18% per year. In the last year, its revenue changed by just 0.9%.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Trifork Group AG Been A Good Investment?

With a total shareholder return of -54% over three years, Trifork Group AG shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Trifork Group that you should be aware of before investing.

Switching gears from Trifork Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.