It's Unlikely That Dampskibsselskabet Norden A/S' (CPH:DNORD) CEO Will See A Huge Pay Rise This Year

Key Insights

• Dampskibsselskabet Norden will host its Annual General Meeting on 12th of March
• Salary of US$1.04m is part of CEO Jan Rindbo's total remuneration
• The total compensation is 107% higher than the average for the industry
• Over the past three years, Dampskibsselskabet Norden's EPS fell by 0.08% and over the past three years, the total shareholder return was 17%

Despite Dampskibsselskabet Norden A/S' (CPH:DNORD) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. Some of these issues will occupy shareholders' minds as the AGM rolls around on 12th of March. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for Dampskibsselskabet Norden

How Does Total Compensation For Jan Rindbo Compare With Other Companies In The Industry?

Our data indicates that Dampskibsselskabet Norden A/S has a market capitalization of kr.5.6b, and total annual CEO compensation was reported as US$2.2m for the year to December 2024. Notably, that's a decrease of 39% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

For comparison, other companies in the Denmark Shipping industry with market capitalizations ranging between kr.2.8b and kr.11b had a median total CEO compensation of US$1.0m. Hence, we can conclude that Jan Rindbo is remunerated higher than the industry median. What's more, Jan Rindbo holds kr.22m 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	US$1.0m	US$1.0m	48%
Other	US$1.1m	US$2.5m	52%
Total Compensation	US$2.2m	US$3.6m	100%

On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. Although there is a difference in how total compensation is set, Dampskibsselskabet Norden more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Dampskibsselskabet Norden A/S' Growth Numbers

Dampskibsselskabet Norden A/S saw earnings per share stay pretty flat over the last three years. It achieved revenue growth of 9.4% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Dampskibsselskabet Norden A/S Been A Good Investment?

With a total shareholder return of 17% over three years, Dampskibsselskabet Norden A/S shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Dampskibsselskabet Norden we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.