PetroNor E&P ASA's (OB:PNOR) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• PetroNor E&P will host its Annual General Meeting on 29th of May
• CEO George Pace's total compensation includes salary of US$530.1k
• The overall pay is comparable to the industry average
• PetroNor E&P's EPS grew by 111% over the past three years while total shareholder loss over the past three years was 26%

Shareholders of PetroNor E&P ASA (OB:PNOR) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 29th of May could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for PetroNor E&P

How Does Total Compensation For George Pace Compare With Other Companies In The Industry?

According to our data, PetroNor E&P ASA has a market capitalization of kr1.4b, and paid its CEO total annual compensation worth US$530k over the year to December 2023. Notably, that's an increase of 20% over the year before. Notably, the salary of US$530k is the entirety of the CEO compensation.

For comparison, other companies in the Norwegian Oil and Gas industry with market capitalizations below kr2.1b, reported a median total CEO compensation of US$419k. So it looks like PetroNor E&P compensates George Pace in line with the median for the industry. What's more, George Pace holds kr1.5m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$530k	US$444k	100%
Other	-	-	-
Total Compensation	US$530k	US$444k	100%

On an industry level, around 48% of total compensation represents salary and 52% is other remuneration. Speaking on a company level, PetroNor E&P prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at PetroNor E&P ASA's Growth Numbers

PetroNor E&P ASA has seen its earnings per share (EPS) increase by 111% a year over the past three years. In the last year, its revenue is up 7.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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?

With a three year total loss of 26% for the shareholders, PetroNor E&P ASA would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

PetroNor E&P pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

Shareholders may want to check for free if PetroNor E&P insiders are buying or selling shares.

Switching gears from PetroNor E&P, 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.