Peter Ruzicka became the CEO of Orkla ASA (OB:ORK) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does Peter Ruzicka’s Compensation Compare With Similar Sized Companies?
According to our data, Orkla ASA has a market capitalization of øre69b, and pays its CEO total annual compensation worth øre11m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at øre6.6m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of øre35b to øre104b. The median total CEO compensation was øre13m.
That means Peter Ruzicka receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Orkla has changed over time.
Is Orkla ASA Growing?
Orkla ASA has increased its earnings per share (EPS) by an average of 3.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.4%.
I would argue that the improvement in revenue isn’t particularly impressive, but I’m happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Orkla ASA Been A Good Investment?
Orkla ASA has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Remuneration for Peter Ruzicka is close enough to the median pay for a CEO of a similar sized company .
We think many would like to see better growth. While the CEO may not be underpaid, we don’t think the pay is too generous either. Whatever your view on compensation, you might want to check if insiders are buying or selling Orkla shares (free trial).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.