We Think Shareholders May Consider Being More Generous With Hunter Group ASA's (OB:HUNT) CEO Compensation Package

Simply Wall St
May 26, 2021
Source: Shutterstock

Shareholders will probably not be disappointed by the robust results at Hunter Group ASA (OB:HUNT) recently and they will be keeping this in mind as they go into the AGM on 03 June 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

View our latest analysis for Hunter Group

Comparing Hunter Group ASA's CEO Compensation With the industry

At the time of writing, our data shows that Hunter Group ASA has a market capitalization of kr1.8b, and reported total annual CEO compensation of US$196k for the year to December 2020. That's a modest increase of 8.0% on the prior year. In particular, the salary of US$188.4k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from kr834m to kr3.3b, the reported median CEO total compensation was US$792k. Accordingly, Hunter Group pays its CEO under the industry median.

Component20202019Proportion (2020)
Salary US$188k US$171k 96%
Other US$7.2k US$9.9k 4%
Total CompensationUS$196k US$181k100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Hunter Group pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

OB:HUNT CEO Compensation May 27th 2021

A Look at Hunter Group ASA's Growth Numbers

Hunter Group ASA has seen its earnings per share (EPS) increase by 126% a year over the past three years. In the last year, its revenue is up 760%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Hunter Group ASA Been A Good Investment?

Hunter Group ASA has generated a total shareholder return of 33% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Erik A. receives almost all of their compensation through a salary. Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Hunter Group (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

If you’re looking to trade Hunter Group, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.