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Mons Aase became the CEO of DOF ASA (OB:DOF) in 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mons Aase’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that DOF ASA has a market cap of øre1.2b, and is paying total annual CEO compensation of øre8.0m. (This figure is for the year to December 2018). That’s a notable increase of 89% on last year. Notably, the salary of øre7.7m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under øre1.7b, and the median CEO total compensation was øre2.5m.
It would therefore appear that DOF ASA pays Mons Aase more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at DOF has changed from year to year.
Is DOF ASA Growing?
DOF ASA has increased its earnings per share (EPS) by an average of 62% a year, over the last three years (using a line of best fit). It saw its revenue drop -9.2% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has DOF ASA Been A Good Investment?
With a three year total loss of 89%, DOF ASA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at DOF ASA with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. This contrasts with the growth in CEO remuneration, in the last year. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. So you may want to check if insiders are buying DOF shares with their own money (free access).
Important note: DOF may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.