Mons Aase became the CEO of DOF ASA (OB:DOF) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does Mons Aase’s Compensation Compare With Similar Sized Companies?
Our data indicates that DOF ASA is worth øre1.1b, and total annual CEO compensation is øre4.2m. (This figure is for the year to 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth øre4.0m. We took a group of companies with market capitalizations below øre1.7b, and calculated the median CEO compensation to be øre2.7m.
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?
On average over the last three years, DOF ASA has grown earnings per share (EPS) by 79% each year (using a line of best fit). It saw its revenue drop -4.1% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
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 90%, DOF ASA would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount DOF ASA pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying DOF shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.