Here's Why Some Shareholders May Not Be Too Generous With Mowi ASA's (OB:MOWI) CEO Compensation This Year
Key Insights
- Mowi's Annual General Meeting to take place on 4th of June
- Salary of €656.0k is part of CEO Ivan Vindheim's total remuneration
- Total compensation is 56% below industry average
- Mowi's EPS declined by 11% over the past three years while total shareholder loss over the past three years was 12%
The disappointing performance at Mowi ASA (OB:MOWI) will make some shareholders rather disheartened. At the upcoming AGM on 4th of June, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. From our analysis below, we think CEO compensation looks appropriate for now.
View our latest analysis for Mowi
How Does Total Compensation For Ivan Vindheim Compare With Other Companies In The Industry?
Our data indicates that Mowi ASA has a market capitalization of kr98b, and total annual CEO compensation was reported as €994k for the year to December 2024. That's a fairly small increase of 6.5% over the previous year. In particular, the salary of €656.0k, makes up a huge portion of the total compensation being paid to the CEO.
On examining similar-sized companies in the Norwegian Food industry with market capitalizations between kr41b and kr122b, we discovered that the median CEO total compensation of that group was €2.2m. This suggests that Ivan Vindheim is paid below the industry median. Moreover, Ivan Vindheim also holds kr2.5m worth of Mowi stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | €656k | €642k | 66% |
| Other | €338k | €291k | 34% |
| Total Compensation | €994k | €933k | 100% |
On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. Our data reveals that Mowi allocates salary more or less in line with the wider market. 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 Mowi ASA's Growth Numbers
Over the last three years, Mowi ASA has shrunk its earnings per share by 11% per year. In the last year, its revenue is up 2.9%.
Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Mowi ASA Been A Good Investment?
With a three year total loss of 12% for the shareholders, Mowi ASA would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Mowi that investors should look into moving forward.
Switching gears from Mowi, 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.
Valuation is complex, but we're here to simplify it.
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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.