Icelandair Group hf.'s (ICE:ICEAIR) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Icelandair Group hf to hold its Annual General Meeting on 12th of March
• Salary of US$452.7k is part of CEO Bogi Bogason's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Icelandair Group hf's EPS grew by 99% and over the past three years, the total loss to shareholders 22%

The underwhelming share price performance of Icelandair Group hf. (ICE:ICEAIR) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 12th of March. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Icelandair Group hf

Comparing Icelandair Group hf.'s CEO Compensation With The Industry

According to our data, Icelandair Group hf. has a market capitalization of Kr50b, and paid its CEO total annual compensation worth US$576k over the year to December 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is US$452.7k, represents most of the total compensation being paid.

For comparison, other companies in the Europe Airlines industry with market capitalizations ranging between Kr27b and Kr110b had a median total CEO compensation of US$744k. This suggests that Icelandair Group hf remunerates its CEO largely in line with the industry average. What's more, Bogi Bogason holds Kr29m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 33% of total compensation represents salary and 67% is other remuneration. It's interesting to note that Icelandair Group hf 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.

Icelandair Group hf.'s Growth

Icelandair Group hf. has seen its earnings per share (EPS) increase by 99% a year over the past three years. In the last year, its revenue is up 3.0%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Icelandair Group hf. Been A Good Investment?

Since shareholders would have lost about 22% over three years, some Icelandair Group hf. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Icelandair Group hf 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.