We Take A Look At Why Dampskibsselskabet Norden A/S' (CPH:DNORD) CEO Compensation Is Well Earned

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 overall pay is comparable to the industry average
• Dampskibsselskabet Norden's total shareholder return over the past three years was 281% while its EPS grew by 79% over the past three years

We have been pretty impressed with the performance at Dampskibsselskabet Norden A/S (CPH:DNORD) recently and CEO Jan Rindbo deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 12th of March. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Dampskibsselskabet Norden

Comparing Dampskibsselskabet Norden A/S' CEO Compensation With The Industry

At the time of writing, our data shows that Dampskibsselskabet Norden A/S has a market capitalization of kr.9.3b, and reported total annual CEO compensation of US$3.6m for the year to December 2023. Notably, that's a decrease of 18% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

For comparison, other companies in the Denmark Shipping industry with market capitalizations ranging between kr.6.9b and kr.22b had a median total CEO compensation of US$3.1m. So it looks like Dampskibsselskabet Norden compensates Jan Rindbo in line with the median for the industry. Moreover, Jan Rindbo also holds kr.25m worth of Dampskibsselskabet Norden stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$1.0m	US$1.0m	29%
Other	US$2.5m	US$3.4m	71%
Total Compensation	US$3.6m	US$4.4m	100%

On an industry level, around 39% of total compensation represents salary and 61% is other remuneration. It's interesting to note that Dampskibsselskabet Norden allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Dampskibsselskabet Norden A/S' Growth

Dampskibsselskabet Norden A/S has seen its earnings per share (EPS) increase by 79% a year over the past three years. It saw its revenue drop 31% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dampskibsselskabet Norden A/S Been A Good Investment?

Boasting a total shareholder return of 281% over three years, Dampskibsselskabet Norden A/S has done well by shareholders. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Dampskibsselskabet Norden that investors should look into moving forward.

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. 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.