This Is Why We Think NTG Nordic Transport Group A/S' (CPH:NTG) CEO Might Get A Pay Rise Approved By Shareholders

Key Insights

• NTG Nordic Transport Group will host its Annual General Meeting on 21st of March
• Total pay for CEO Michael Larsen includes kr.2.68m salary
• The overall pay is 57% below the industry average
• NTG Nordic Transport Group's total shareholder return over the past three years was 6.6% while its EPS grew by 46% over the past three years

Shareholders will be pleased by the robust performance of NTG Nordic Transport Group A/S (CPH:NTG) recently and this will be kept in mind in the upcoming AGM on 21st of March. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for NTG Nordic Transport Group

How Does Total Compensation For Michael Larsen Compare With Other Companies In The Industry?

According to our data, NTG Nordic Transport Group A/S has a market capitalization of kr.5.6b, and paid its CEO total annual compensation worth kr.4.6m over the year to December 2023. That's a notable decrease of 30% on last year. Notably, the salary which is kr.2.68m, represents a considerable chunk of the total compensation being paid.

On comparing similar companies from the Denmark Transportation industry with market caps ranging from kr.2.7b to kr.11b, we found that the median CEO total compensation was kr.11m. In other words, NTG Nordic Transport Group pays its CEO lower than the industry median.

Component	2023	2022	Proportion (2023)
Salary	kr.2.7m	kr.2.6m	58%
Other	kr.1.9m	kr.4.0m	42%
Total Compensation	kr.4.6m	kr.6.6m	100%

On an industry level, around 47% of total compensation represents salary and 53% is other remuneration. It's interesting to note that NTG Nordic Transport Group pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at NTG Nordic Transport Group A/S' Growth Numbers

NTG Nordic Transport Group A/S has seen its earnings per share (EPS) increase by 46% a year over the past three years. It saw its revenue drop 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 NTG Nordic Transport Group A/S Been A Good Investment?

NTG Nordic Transport Group A/S has not done too badly by shareholders, with a total return of 6.6%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at NTG Nordic Transport Group.

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.