Here's Why Borregaard ASA's (OB:BRG) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Borregaard to hold its Annual General Meeting on 10th of April
• CEO Per Sørlie's total compensation includes salary of kr4.69m
• Total compensation is 45% below industry average
• Borregaard's EPS grew by 5.9% over the past three years while total shareholder loss over the past three years was 2.4%

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The performance at Borregaard ASA (OB:BRG) has been rather lacklustre of late and shareholders may be wondering what CEO Per Sørlie is planning to do about this. At the next AGM coming up on 10th of April, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Borregaard

How Does Total Compensation For Per Sørlie Compare With Other Companies In The Industry?

According to our data, Borregaard ASA has a market capitalization of kr17b, and paid its CEO total annual compensation worth kr10m over the year to December 2024. Notably, that's an increase of 9.2% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at kr4.7m.

In comparison with other companies in the Norwegian Chemicals industry with market capitalizations ranging from kr10b to kr33b, the reported median CEO total compensation was kr19m. This suggests that Per Sørlie is paid below the industry median. Furthermore, Per Sørlie directly owns kr28m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	kr4.7m	kr4.1m	45%
Other	kr5.7m	kr5.4m	55%
Total Compensation	kr10m	kr9.5m	100%

Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. In Borregaard's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Borregaard ASA's Growth Numbers

Over the past three years, Borregaard ASA has seen its earnings per share (EPS) grow by 5.9% per year. In the last year, its revenue is up 6.8%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. 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 Borregaard ASA Been A Good Investment?

Since shareholders would have lost about 2.4% over three years, some Borregaard ASA investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The lack lustre share price performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

So you may want to check if insiders are buying Borregaard shares with their own money (free access).

Switching gears from Borregaard, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.