It's Unlikely That Awilco LNG ASA's (OB:ALNG) CEO Will See A Huge Pay Rise This Year

Key Insights

• Awilco LNG's Annual General Meeting to take place on 14th of May
• CEO Jon Storheill's total compensation includes salary of US$374.0k
• Total compensation is 92% above industry average
• Awilco LNG's EPS grew by 61% over the past three years while total shareholder return over the past three years was 457%

CEO Jon Storheill has done a decent job of delivering relatively good performance at Awilco LNG ASA (OB:ALNG) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Awilco LNG

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

According to our data, Awilco LNG ASA has a market capitalization of kr1.1b, and paid its CEO total annual compensation worth US$813k over the year to December 2023. That's a notable increase of 31% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$374k.

For comparison, other companies in the Norwegian Oil and Gas industry with market capitalizations below kr2.2b, reported a median total CEO compensation of US$423k. Hence, we can conclude that Jon Storheill is remunerated higher than the industry median. Furthermore, Jon Storheill directly owns kr1.1m worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	US$374k	US$368k	46%
Other	US$439k	US$254k	54%
Total Compensation	US$813k	US$622k	100%

On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. Awilco LNG is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Awilco LNG ASA's Growth Numbers

Awilco LNG ASA has seen its earnings per share (EPS) increase by 61% a year over the past three years. It achieved revenue growth of 57% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Awilco LNG ASA Been A Good Investment?

Boasting a total shareholder return of 457% over three years, Awilco LNG ASA has done well by shareholders. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Awilco LNG (1 is significant!) that you should be aware of before investing here.

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. 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.