This Is Why We Think Borregaard ASA's (OB:BRG) CEO Might Get A Pay Rise Approved By Shareholders

Key Insights

• Borregaard's Annual General Meeting to take place on 11th of April
• CEO Per Sørlie's total compensation includes salary of kr4.12m
• The total compensation is 48% less than the average for the industry
• Borregaard's EPS grew by 26% over the past three years while total shareholder return over the past three years was 12%

Shareholders will probably not be disappointed by the robust results at Borregaard ASA (OB:BRG) recently and they will be keeping this in mind as they go into the AGM on 11th of April. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See 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 kr19b, and paid its CEO total annual compensation worth kr9.5m over the year to December 2023. We note that's an increase of 13% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr4.1m.

On comparing similar companies from the Norwegian Chemicals industry with market caps ranging from kr11b to kr34b, we found that the median CEO total compensation was kr18m. Accordingly, Borregaard pays its CEO under the industry median. Moreover, Per Sørlie also holds kr32m worth of Borregaard stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	kr4.1m	kr3.9m	43%
Other	kr5.4m	kr4.5m	57%
Total Compensation	kr9.5m	kr8.5m	100%

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. Our data reveals that Borregaard allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Borregaard ASA's Growth

Borregaard ASA's earnings per share (EPS) grew 26% per year over the last three years. In the last year, its revenue is up 3.6%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Borregaard ASA Been A Good Investment?

Borregaard ASA has served shareholders reasonably well, with a total return of 12% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.