Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Charles Høstlund became the CEO of Norway Royal Salmon AS (OB:NRS) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Charles Høstlund’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Norway Royal Salmon AS has a market cap of øre8.6b, and is paying total annual CEO compensation of øre9.5m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at øre2.7m. We looked at a group of companies with market capitalizations from øre3.4b to øre14b, and the median CEO total compensation was øre5.1m.
It would therefore appear that Norway Royal Salmon AS pays Charles Høstlund more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Norway Royal Salmon has changed from year to year.
Is Norway Royal Salmon AS Growing?
Over the last three years Norway Royal Salmon AS has shrunk its earnings per share by an average of 8.3% per year (measured with a line of best fit). Its revenue is down -1.0% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Has Norway Royal Salmon AS Been A Good Investment?
I think that the total shareholder return of 71%, 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.
We compared the total CEO remuneration paid by Norway Royal Salmon AS, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
However, we can’t argue with the strong returns to shareholders, over the same time period. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Norway Royal Salmon.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.