It Looks Like The CEO Of Protector Forsikring ASA (OB:PROT) May Be Underpaid Compared To Peers

Key Insights

• Protector Forsikring's Annual General Meeting to take place on 11th of April
• CEO Henrik Hoye's total compensation includes salary of kr6.03m
• The total compensation is 57% less than the average for the industry
• Over the past three years, Protector Forsikring's EPS grew by 19% and over the past three years, the total shareholder return was 225%

The solid performance at Protector Forsikring ASA (OB:PROT) has been impressive and shareholders will probably be pleased to know that CEO Henrik Hoye has delivered. At the upcoming AGM on 11th of April, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Protector Forsikring

How Does Total Compensation For Henrik Hoye Compare With Other Companies In The Industry?

At the time of writing, our data shows that Protector Forsikring ASA has a market capitalization of kr19b, and reported total annual CEO compensation of kr11m for the year to December 2023. We note that's an increase of 25% above last year. In particular, the salary of kr6.03m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Norway Insurance industry with market capitalizations ranging between kr11b and kr34b had a median total CEO compensation of kr26m. In other words, Protector Forsikring pays its CEO lower than the industry median. What's more, Henrik Hoye holds kr60m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	kr6.0m	kr5.5m	54%
Other	kr5.2m	kr3.6m	46%
Total Compensation	kr11m	kr9.0m	100%

Talking in terms of the industry, salary represented approximately 41% of total compensation out of all the companies we analyzed, while other remuneration made up 59% of the pie. According to our research, Protector Forsikring has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Protector Forsikring ASA's Growth Numbers

Over the past three years, Protector Forsikring ASA has seen its earnings per share (EPS) grow by 19% per year. It achieved revenue growth of 42% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Protector Forsikring ASA Been A Good Investment?

We think that the total shareholder return of 225%, over three years, would leave most Protector Forsikring ASA 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Protector Forsikring that you should be aware of before investing.

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.