We Think Shareholders May Consider Being More Generous With Veidekke ASA's (OB:VEI) CEO Compensation Package

Key Insights

• Veidekke will host its Annual General Meeting on 7th of May
• Total pay for CEO Jimmy Bengtsson includes kr4.94m salary
• The total compensation is 74% less than the average for the industry
• Veidekke's total shareholder return over the past three years was 58% while its EPS grew by 9.6% over the past three years

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

Shareholders will be pleased by the robust performance of Veidekke ASA (OB:VEI) recently and this will be kept in mind in the upcoming AGM on 7th of May. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

View our latest analysis for Veidekke

How Does Total Compensation For Jimmy Bengtsson Compare With Other Companies In The Industry?

According to our data, Veidekke ASA has a market capitalization of kr21b, and paid its CEO total annual compensation worth kr7.0m over the year to December 2024. That's a fairly small increase of 6.1% over the previous year. Notably, the salary which is kr4.94m, represents most of the total compensation being paid.

On comparing similar companies from the Norwegian Construction industry with market caps ranging from kr10b to kr33b, we found that the median CEO total compensation was kr28m. This suggests that Jimmy Bengtsson is paid below the industry median.

Component	2024	2023	Proportion (2024)
Salary	kr4.9m	kr4.7m	70%
Other	kr2.1m	kr1.9m	30%
Total Compensation	kr7.0m	kr6.6m	100%

Speaking on an industry level, nearly 56% of total compensation represents salary, while the remainder of 44% is other remuneration. Veidekke pays out 70% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Veidekke ASA's Growth

Veidekke ASA has seen its earnings per share (EPS) increase by 9.6% a year over the past three years. It saw its revenue drop 4.0% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Veidekke ASA Been A Good Investment?

Boasting a total shareholder return of 58% over three years, Veidekke ASA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. 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 Veidekke that investors should think about before committing capital to this stock.

Switching gears from Veidekke, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.