Does Norway Royal Salmon's (OB:NRS) CEO Salary Compare Well With Industry Peers?

This article will reflect on the compensation paid to Charles Høstlund who has served as CEO of Norway Royal Salmon AS (OB:NRS) since 2014. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Norway Royal Salmon

Comparing Norway Royal Salmon AS' CEO Compensation With the industry

Our data indicates that Norway Royal Salmon AS has a market capitalization of kr8.8b, and total annual CEO compensation was reported as kr12m for the year to December 2019. Notably, that's an increase of 31% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at kr2.7m.

On examining similar-sized companies in the industry with market capitalizations between kr3.7b and kr15b, we discovered that the median CEO total compensation of that group was kr8.6m. Accordingly, our analysis reveals that Norway Royal Salmon AS pays Charles Høstlund north of the industry median. What's more, Charles Høstlund holds kr37m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. Norway Royal Salmon sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Norway Royal Salmon AS' Growth Numbers

Over the last three years, Norway Royal Salmon AS has shrunk its earnings per share by 31% per year. It achieved revenue growth of 5.4% over the last year.

Few shareholders would be pleased to read that EPS have declined. 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 Norway Royal Salmon AS Been A Good Investment?

We think that the total shareholder return of 36%, over three years, would leave most Norway Royal Salmon AS shareholders smiling. 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...

As previously discussed, Charles is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. We're not seeing great strides in EPS, but the company has clearly pleased some investors, given the returns over the last three years. Considering positive investor returns, it would be bold of us to criticize CEO compensation, but shareholders might want to see healthier EPS growth before a raise is given out.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Norway Royal Salmon (1 can't be ignored!) that you should be aware of before investing here.

Switching gears from Norway Royal Salmon, 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. 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.
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