Key Insights
- PetroNor E&P's Annual General Meeting to take place on 21st of May
- Total pay for CEO George Pace includes US$523.6k salary
- Total compensation is 38% below industry average
- PetroNor E&P's EPS grew by 33% over the past three years while total shareholder return over the past three years was 82%
Shareholders will be pleased by the impressive results for PetroNor E&P ASA (OB:PNOR) recently and CEO George Pace has played a key role. This would be kept in mind at the upcoming AGM on 21st of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for PetroNor E&P
Comparing PetroNor E&P ASA's CEO Compensation With The Industry
According to our data, PetroNor E&P ASA has a market capitalization of kr1.9b, and paid its CEO total annual compensation worth US$659k over the year to December 2024. That's a notable increase of 24% on last year. We note that the salary portion, which stands at US$523.6k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Norwegian Oil and Gas industry with market capitalizations ranging between kr1.0b and kr4.2b had a median total CEO compensation of US$1.1m. In other words, PetroNor E&P pays its CEO lower than the industry median. Furthermore, George Pace directly owns kr2.0m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$524k | US$530k | 79% |
| Other | US$136k | - | 21% |
| Total Compensation | US$659k | US$530k | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. PetroNor E&P pays out 79% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at PetroNor E&P ASA's Growth Numbers
PetroNor E&P ASA's earnings per share (EPS) grew 33% per year over the last three years. In the last year, its revenue is up 9.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has PetroNor E&P ASA Been A Good Investment?
Most shareholders would probably be pleased with PetroNor E&P ASA for providing a total return of 82% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for PetroNor E&P that investors should be aware of in a dynamic business environment.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About OB:PNOR
PetroNor E&P
Operates as an independent oil and gas exploration and production company in countries offshore of West Africa.
Flawless balance sheet and fair value.
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