Does Gjensidige Forsikring ASA’s (OB:GJF) CEO Pay Matter?

Helge Baastad became the CEO of Gjensidige Forsikring ASA (OB:GJF) in 2003. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Gjensidige Forsikring

How Does Helge Baastad’s Compensation Compare With Similar Sized Companies?

Our data indicates that Gjensidige Forsikring ASA is worth kr91b, and total annual CEO compensation was reported as kr9.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at kr5.2m. We looked at a group of companies with market capitalizations over kr73b and the median CEO total compensation was kr16m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.

Most shareholders would consider it a positive that Helge Baastad takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Gjensidige Forsikring has changed from year to year.

OB:GJF CEO Compensation, October 23rd 2019
OB:GJF CEO Compensation, October 23rd 2019

Is Gjensidige Forsikring ASA Growing?

Gjensidige Forsikring ASA has increased its earnings per share (EPS) by an average of 1.3% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.1%.

I’d prefer higher revenue growth, but the modest improvement in EPS is good. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.

Has Gjensidige Forsikring ASA Been A Good Investment?

Boasting a total shareholder return of 38% over three years, Gjensidige Forsikring ASA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Gjensidige Forsikring ASA is currently paying its CEO below what is normal for large companies.

Helge Baastad is paid less than what is normal at large companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Gjensidige Forsikring.

Important note: Gjensidige Forsikring may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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 editorial-team@simplywallst.com. 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.