We Think Shareholders Will Probably Be Generous With Elopak ASA's (OB:ELO) CEO Compensation

Key Insights

• Elopak to hold its Annual General Meeting on 14th of May
• CEO Thomas Kormendi's total compensation includes salary of €484.0k
• Total compensation is similar to the industry average
• Over the past three years, Elopak's EPS grew by 48% and over the past three years, the total shareholder return was 212%

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We have been pretty impressed with the performance at Elopak ASA (OB:ELO) recently and CEO Thomas Kormendi deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 14th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Elopak

Comparing Elopak ASA's CEO Compensation With The Industry

According to our data, Elopak ASA has a market capitalization of kr12b, and paid its CEO total annual compensation worth €1.1m over the year to December 2024. That's a modest increase of 7.4% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at €484k.

In comparison with other companies in the Norway Packaging industry with market capitalizations ranging from kr4.1b to kr17b, the reported median CEO total compensation was €856k. So it looks like Elopak compensates Thomas Kormendi in line with the median for the industry. Furthermore, Thomas Kormendi directly owns kr23m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	€484k	€441k	44%
Other	€617k	€584k	56%
Total Compensation	€1.1m	€1.0m	100%

Speaking on an industry level, nearly 53% of total compensation represents salary, while the remainder of 47% is other remuneration. In Elopak's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Elopak ASA's Growth

Elopak ASA's earnings per share (EPS) grew 48% per year over the last three years. It achieved revenue growth of 3.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Elopak ASA Been A Good Investment?

Boasting a total shareholder return of 212% over three years, Elopak ASA has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Elopak that investors should think about before committing capital to this stock.

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.