Shareholders Will Probably Not Have Any Issues With Goodtech ASA's (OB:GOD) CEO Compensation

Key Insights

• Goodtech will host its Annual General Meeting on 24th of April
• Total pay for CEO Margrethe Hauge includes kr4.17m salary
• The overall pay is comparable to the industry average
• Over the past three years, Goodtech's EPS grew by 112% and over the past three years, the total shareholder return was 5.3%

We've discovered 1 warning sign about Goodtech. View them for free.

CEO Margrethe Hauge has done a decent job of delivering relatively good performance at Goodtech ASA (OB:GOD) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of April. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Goodtech

How Does Total Compensation For Margrethe Hauge Compare With Other Companies In The Industry?

Our data indicates that Goodtech ASA has a market capitalization of kr239m, and total annual CEO compensation was reported as kr4.4m for the year to December 2024. That's a slight decrease of 5.8% on the prior year. We note that the salary portion, which stands at kr4.17m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Norwegian Machinery industry with market capitalizations under kr2.1b, the reported median total CEO compensation was kr3.8m. So it looks like Goodtech compensates Margrethe Hauge in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	kr4.2m	kr4.4m	95%
Other	kr240k	kr240k	5%
Total Compensation	kr4.4m	kr4.7m	100%

Talking in terms of the industry, salary represented approximately 73% of total compensation out of all the companies we analyzed, while other remuneration made up 27% of the pie. Goodtech is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Goodtech ASA's Growth Numbers

Goodtech ASA has seen its earnings per share (EPS) increase by 112% a year over the past three years. Its revenue is down 1.7% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Goodtech ASA Been A Good Investment?

Goodtech ASA has not done too badly by shareholders, with a total return of 5.3%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Goodtech that you should be aware of before investing.

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.