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Knut Sæberg has been the CEO of North Energy ASA (OB:NORTH) since 2014. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Knut Sæberg’s Compensation Compare With Similar Sized Companies?
Our data indicates that North Energy ASA is worth øre223m, and total annual CEO compensation is øre3.4m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at øre2.6m. We looked at a group of companies with market capitalizations under øre1.7b, and the median CEO compensation was øre2.7m.
So Knut Sæberg is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at North Energy, below.
Is North Energy ASA Growing?
North Energy ASA has increased its earnings per share (EPS) by an average of 55% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -15%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has North Energy ASA Been A Good Investment?
Most shareholders would probably be pleased with North Energy ASA for providing a total return of 81% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Knut Sæberg is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at North Energy.
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.
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.