Does Self Storage Group's (OB:SSG) CEO Salary Compare Well With Industry Peers?

Fabian Søbak became the CEO of Self Storage Group ASA (OB:SSG) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Self Storage Group.

Check out our latest analysis for Self Storage Group

Comparing Self Storage Group ASA's CEO Compensation With the industry

At the time of writing, our data shows that Self Storage Group ASA has a market capitalization of kr2.2b, and reported total annual CEO compensation of kr640k for the year to December 2019. Notably, that's an increase of 20% over the year before. In particular, the salary of kr616.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from kr862m to kr3.4b, we found that the median CEO total compensation was kr3.6m. That is to say, Fabian Søbak is paid under the industry median.

Talking in terms of the industry, salary represented approximately 68% of total compensation out of all the companies we analyzed, while other remuneration made up 32% of the pie. Self Storage Group is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Self Storage Group ASA's Growth

Over the last three years, Self Storage Group ASA has shrunk its earnings per share by 12% per year. In the last year, its revenue is up 13%.

The decline in EPS is a bit concerning. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Self Storage Group ASA Been A Good Investment?

Most shareholders would probably be pleased with Self Storage Group ASA for providing a total return of 54% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Fabian receives almost all of their compensation through a salary. As we noted earlier, Self Storage Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. And while EPS growth is negative, shareholder returns have been healthy recently. So, while it would be nice to have better EPS growth, our analysis suggests CEO compensation is quite modest.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Self Storage Group that you should be aware of before investing.

Important note: Self Storage Group 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.

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This article by Simply Wall St is general in nature. 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.
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