It's Probably Less Likely That HAV Group ASA's (OB:HAV) CEO Will See A Huge Pay Rise This Year

Key Insights

• HAV Group will host its Annual General Meeting on 27th of May
• CEO Gunnar Larsen's total compensation includes salary of kr2.61m
• The overall pay is comparable to the industry average
• HAV Group's three-year loss to shareholders was 50% while its EPS was down 118% over the past three years

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In the past three years, the share price of HAV Group ASA (OB:HAV) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. The AGM coming up on 27th of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

Check out 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 kr259m, and reported total annual CEO compensation of kr3.0m for the year to December 2024. That's a modest increase of 7.1% on the prior year. Notably, the salary which is kr2.61m, represents most of the total compensation being paid.

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. This suggests that HAV Group remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	kr2.6m	kr2.5m	87%
Other	kr397k	kr317k	13%
Total Compensation	kr3.0m	kr2.8m	100%

On an industry level, around 80% of total compensation represents salary and 20% is other remuneration. There isn't a significant difference between HAV Group and the broader market, in terms of salary allocation in the overall compensation package. 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 HAV Group ASA's Growth Numbers

Over the last three years, HAV Group ASA has shrunk its earnings per share by 118% per year. Its revenue is up 23% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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?

With a total shareholder return of -50% over three years, HAV Group ASA shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is concerning) in HAV Group we think you should know about.

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.