This Is Why Integrated Wind Solutions ASA's (OB:IWS) CEO Compensation Looks Appropriate

Key Insights

• Integrated Wind Solutions will host its Annual General Meeting on 7th of May
• Salary of €305.0k is part of CEO Lars-Henrik Roren's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Integrated Wind Solutions' EPS grew by 18% and over the past three years, the total shareholder return was 20%

CEO Lars-Henrik Roren has done a decent job of delivering relatively good performance at Integrated Wind Solutions ASA (OB:IWS) recently. As shareholders go into the upcoming AGM on 7th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Integrated Wind Solutions

Comparing Integrated Wind Solutions ASA's CEO Compensation With The Industry

Our data indicates that Integrated Wind Solutions ASA has a market capitalization of kr1.8b, and total annual CEO compensation was reported as €725k for the year to December 2023. That's a notable increase of 14% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €305k.

In comparison with other companies in the Norwegian Construction industry with market capitalizations ranging from kr1.1b to kr4.4b, the reported median CEO total compensation was €800k. This suggests that Integrated Wind Solutions remunerates its CEO largely in line with the industry average. Moreover, Lars-Henrik Roren also holds kr4.4m worth of Integrated Wind Solutions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	€305k	€325k	42%
Other	€420k	€312k	58%
Total Compensation	€725k	€638k	100%

On an industry level, around 49% of total compensation represents salary and 51% is other remuneration. Integrated Wind Solutions pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Integrated Wind Solutions ASA's Growth Numbers

Integrated Wind Solutions ASA's earnings per share (EPS) grew 18% per year over the last three years. In the last year, its revenue is up 5.9%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Integrated Wind Solutions ASA Been A Good Investment?

Integrated Wind Solutions ASA has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Integrated Wind Solutions we think you should know about.

Important note: Integrated Wind Solutions 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.