Shareholders Will Probably Be Cautious Of Increasing SalMar ASA's (OB:SALM) CEO Compensation At The Moment

Key Insights

• SalMar's Annual General Meeting to take place on 18th of June
• Salary of kr4.78m is part of CEO Frode Arntsen's total remuneration
• The overall pay is 68% below the industry average
• SalMar's three-year loss to shareholders was 26% while its EPS was down 19% over the past three years

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The disappointing performance at SalMar ASA (OB:SALM) will make some shareholders rather disheartened. At the upcoming AGM on 18th 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. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for SalMar

Comparing SalMar ASA's CEO Compensation With The Industry

Our data indicates that SalMar ASA has a market capitalization of kr62b, and total annual CEO compensation was reported as kr8.3m for the year to December 2024. That's a notable increase of 27% on last year. We note that the salary of kr4.78m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Norwegian Food industry with market capitalizations ranging between kr40b and kr121b had a median total CEO compensation of kr26m. Accordingly, SalMar pays its CEO under the industry median. Moreover, Frode Arntsen also holds kr4.4m worth of SalMar stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. SalMar sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

SalMar ASA's Growth

Over the last three years, SalMar ASA has shrunk its earnings per share by 19% per year. Its revenue is down 11% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 SalMar ASA Been A Good Investment?

With a three year total loss of 26% for the shareholders, SalMar ASA would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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 2 warning signs for SalMar 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.