Nordic Halibut AS' (OB:NOHAL) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Nordic Halibut will host its Annual General Meeting on 28th of May
• Salary of kr1.80m is part of CEO Edvard Henden's total remuneration
• Total compensation is 51% below industry average
• Over the past three years, Nordic Halibut's EPS fell by 3.1% and over the past three years, the total loss to shareholders 23%

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Performance at Nordic Halibut AS (OB:NOHAL) has not been particularly rosy recently and shareholders will likely be holding CEO Edvard Henden and the board accountable for this. At the upcoming AGM on 28th of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for Nordic Halibut

Comparing Nordic Halibut AS' CEO Compensation With The Industry

Our data indicates that Nordic Halibut AS has a market capitalization of kr1.1b, and total annual CEO compensation was reported as kr1.9m for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is kr1.80m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Norwegian Food industry with market capitalizations below kr2.0b, we found that the median total CEO compensation was kr3.9m. Accordingly, Nordic Halibut pays its CEO under the industry median.

Component	2024	2023	Proportion (2024)
Salary	kr1.8m	kr1.8m	96%
Other	kr76k	kr109k	4%
Total Compensation	kr1.9m	kr1.9m	100%

On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. Nordic Halibut pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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 Nordic Halibut AS' Growth Numbers

Nordic Halibut AS has reduced its earnings per share by 3.1% a year over the last three years. It saw its revenue drop 11% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Nordic Halibut AS Been A Good Investment?

Given the total shareholder loss of 23% over three years, many shareholders in Nordic Halibut AS are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Nordic Halibut pays its CEO a majority of compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Nordic Halibut that investors should be aware of in a dynamic business environment.

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.

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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.