Shareholders May Be A Bit More Conservative With Electromagnetic Geoservices ASA's (OB:EMGS) CEO Compensation For Now

Key Insights

• Electromagnetic Geoservices' Annual General Meeting to take place on 19th of June
• Salary of US$212.0k is part of CEO Bjørn Lindhom's total remuneration
• Total compensation is similar to the industry average
• Electromagnetic Geoservices' EPS declined by 11% over the past three years while total shareholder loss over the past three years was 6.9%

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In the past three years, shareholders of Electromagnetic Geoservices ASA (OB:EMGS) have seen a loss on their investment. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 19th of June and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for Electromagnetic Geoservices

Comparing Electromagnetic Geoservices ASA's CEO Compensation With The Industry

Our data indicates that Electromagnetic Geoservices ASA has a market capitalization of kr238m, and total annual CEO compensation was reported as US$226k for the year to December 2024. That's a notable decrease of 46% on last year. In particular, the salary of US$212.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Norwegian Energy Services industry with market capitalizations under kr2.0b, the reported median total CEO compensation was US$226k. So it looks like Electromagnetic Geoservices compensates Bjørn Lindhom in line with the median for the industry.

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Electromagnetic Geoservices pays out 94% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Electromagnetic Geoservices ASA's Growth

Over the last three years, Electromagnetic Geoservices ASA has shrunk its earnings per share by 11% per year. It achieved revenue growth of 975% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Electromagnetic Geoservices ASA Been A Good Investment?

With a three year total loss of 6.9% for the shareholders, Electromagnetic Geoservices ASA would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Electromagnetic Geoservices (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Electromagnetic Geoservices, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.