It Looks Like Awilco LNG ASA's (OB:ALNG) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Awilco LNG will host its Annual General Meeting on 7th of May
• Total pay for CEO Jon Storheill includes US$373.0k salary
• The total compensation is 37% higher than the average for the industry
• Awilco LNG's three-year loss to shareholders was 38% while its EPS was down 6.8% over the past three years

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The results at Awilco LNG ASA (OB:ALNG) have been quite disappointing recently and CEO Jon Storheill bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 7th of May. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Awilco LNG

How Does Total Compensation For Jon Storheill Compare With Other Companies In The Industry?

At the time of writing, our data shows that Awilco LNG ASA has a market capitalization of kr331m, and reported total annual CEO compensation of US$625k for the year to December 2024. We note that's a decrease of 23% compared to last year. We note that the salary of US$373.0k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar-sized companies in the Norwegian Oil and Gas industry with market capitalizations below kr2.1b, we found that the median total CEO compensation was US$457k. This suggests that Jon Storheill is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. Awilco LNG is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Awilco LNG ASA's Growth Numbers

Over the last three years, Awilco LNG ASA has shrunk its earnings per share by 6.8% per year. It saw its revenue drop 16% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Awilco LNG ASA Been A Good Investment?

Few Awilco LNG ASA shareholders would feel satisfied with the return of -38% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 5 warning signs for Awilco LNG (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Awilco LNG 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. 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.