How Much is VOW's (OB:VOW) CEO Getting Paid?

Henrik Badin became the CEO of VOW ASA (OB:VOW) in 2008, 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 VOW.

Check out our latest analysis for VOW

Comparing VOW ASA's CEO Compensation With the industry

At the time of writing, our data shows that VOW ASA has a market capitalization of kr3.5b, and reported total annual CEO compensation of kr2.7m for the year to December 2019. That's a notable increase of 26% on last year. Notably, the salary which is kr2.29m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between kr1.8b and kr7.1b had a median total CEO compensation of kr4.2m. This suggests that Henrik Badin is paid below the industry median. What's more, Henrik Badin holds kr333m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. According to our research, VOW 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.

A Look at VOW ASA's Growth Numbers

VOW ASA has reduced its earnings per share by 31% a year over the last three years. Its revenue is up 23% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has VOW ASA Been A Good Investment?

We think that the total shareholder return of 717%, over three years, would leave most VOW ASA shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As we noted earlier, VOW pays its CEO lower than the norm for similar-sized companies belonging to the same industry. And as we saw, revenue growth and shareholder returns have been rising On the flip side, EPS growth during the same period is negative. But all things considered, we believe shareholders will be happy with the performance, and that's why CEO compensation is appropriate in our opinion.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for VOW you should be aware of, and 1 of them is a bit concerning.

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. 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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