We Discuss Whether Equinor ASA's (OB:EQNR) CEO Is Due For A Pay Rise

Key Insights

• Equinor to hold its Annual General Meeting on 14th of May
• Total pay for CEO Anders Opedal includes US$951.0k salary
• The overall pay is 41% below the industry average
• Over the past three years, Equinor's EPS grew by 46% and over the past three years, the total shareholder return was 115%

Shareholders will be pleased by the impressive results for Equinor ASA (OB:EQNR) recently and CEO Anders Opedal has played a key role. At the upcoming AGM on 14th of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Equinor

How Does Total Compensation For Anders Opedal Compare With Other Companies In The Industry?

Our data indicates that Equinor ASA has a market capitalization of kr893b, and total annual CEO compensation was reported as US$2.0m for the year to December 2023. We note that's a small decrease of 3.9% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$951k.

In comparison with other companies in the Norwegian Oil and Gas industry with market capitalizations over kr87b, the reported median total CEO compensation was US$3.3m. Accordingly, Equinor pays its CEO under the industry median. Moreover, Anders Opedal also holds kr17m worth of Equinor stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$951k	US$999k	48%
Other	US$1.0m	US$1.0m	52%
Total Compensation	US$2.0m	US$2.0m	100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. There isn't a significant difference between Equinor and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Equinor ASA's Growth

Equinor ASA has seen its earnings per share (EPS) increase by 46% a year over the past three years. Its revenue is down 28% over the previous 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Equinor ASA Been A Good Investment?

We think that the total shareholder return of 115%, over three years, would leave most Equinor ASA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is potentially serious) in Equinor we think you should know about.

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.