Why We Think Shareholders May Be Considering Bumping Up DNB Bank ASA's (OB:DNB) CEO Compensation

Key Insights

• DNB Bank to hold its Annual General Meeting on 29th of April
• CEO Kjerstin Braathen's total compensation includes salary of kr12.2m
• The overall pay is 45% below the industry average
• DNB Bank's EPS grew by 24% over the past three years while total shareholder return over the past three years was 65%

Our free stock report includes 1 warning sign investors should be aware of before investing in DNB Bank. Read for free now.

The solid performance at DNB Bank ASA (OB:DNB) has been impressive and shareholders will probably be pleased to know that CEO Kjerstin Braathen has delivered. This would be kept in mind at the upcoming AGM on 29th of April which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for DNB Bank

Comparing DNB Bank ASA's CEO Compensation With The Industry

According to our data, DNB Bank ASA has a market capitalization of kr394b, and paid its CEO total annual compensation worth kr17m over the year to December 2024. That's a fairly small increase of 6.7% over the previous year. Notably, the salary which is kr12.2m, represents most of the total compensation being paid.

On comparing similar companies in the Norwegian Banks industry with market capitalizations above kr84b, we found that the median total CEO compensation was kr31m. In other words, DNB Bank pays its CEO lower than the industry median. Furthermore, Kjerstin Braathen directly owns kr26m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr12m	kr12m	72%
Other	kr4.7m	kr4.2m	28%
Total Compensation	kr17m	kr16m	100%

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. DNB Bank is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

DNB Bank ASA's Growth

Over the past three years, DNB Bank ASA has seen its earnings per share (EPS) grow by 24% per year. It achieved revenue growth of 7.9% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has DNB Bank ASA Been A Good Investment?

Most shareholders would probably be pleased with DNB Bank ASA for providing a total return of 65% over three years. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 1 warning sign for DNB Bank that you should be aware of before investing.

Important note: DNB Bank is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.