HAV Group ASA's (OB:HAV) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• HAV Group will host its Annual General Meeting on 29th of May
• CEO Gunnar Larsen's total compensation includes salary of kr2.49m
• Total compensation is 30% below industry average
• HAV Group's EPS declined by 65% over the past three years while total shareholder loss over the past three years was 33%

The disappointing performance at HAV Group ASA (OB:HAV) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 29th of May. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for HAV Group

Comparing HAV Group ASA's CEO Compensation With The Industry

At the time of writing, our data shows that HAV Group ASA has a market capitalization of kr340m, and reported total annual CEO compensation of kr2.8m for the year to December 2023. We note that's an increase of 15% above last year. We note that the salary portion, which stands at kr2.49m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Norwegian Machinery industry with market capitalizations below kr2.1b, we found that the median total CEO compensation was kr4.0m. In other words, HAV Group pays its CEO lower than the industry median.

Component	2023	2022	Proportion (2023)
Salary	kr2.5m	kr2.2m	89%
Other	kr317k	kr281k	11%
Total Compensation	kr2.8m	kr2.4m	100%

Talking in terms of the industry, salary represented approximately 74% of total compensation out of all the companies we analyzed, while other remuneration made up 26% of the pie. According to our research, HAV Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

HAV Group ASA's Growth

HAV Group ASA has reduced its earnings per share by 65% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 HAV Group ASA Been A Good Investment?

The return of -33% over three years would not have pleased HAV Group ASA shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for HAV Group that investors should think about before committing capital to this stock.

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.