Circio Holding ASA's (OB:CRNA) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Circio Holding to hold its Annual General Meeting on 5th of June
• Salary of kr2.49m is part of CEO Erik Wiklund's total remuneration
• The total compensation is 32% less than the average for the industry
• Circio Holding's three-year loss to shareholders was 96% while its EPS was down 16% over the past three years

The disappointing performance at Circio Holding ASA (OB:CRNA) will make some shareholders rather disheartened. At the upcoming AGM on 5th of June, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. From our analysis below, we think CEO compensation looks appropriate for now.

See our latest analysis for Circio Holding

Comparing Circio Holding ASA's CEO Compensation With The Industry

At the time of writing, our data shows that Circio Holding ASA has a market capitalization of kr59m, and reported total annual CEO compensation of kr2.6m for the year to December 2023. We note that's a decrease of 31% compared to last year. Notably, the salary which is kr2.49m, represents most of the total compensation being paid.

For comparison, other companies in the Norwegian Biotechs industry with market capitalizations below kr2.1b, reported a median total CEO compensation of kr3.8m. That is to say, Erik Wiklund is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	kr2.5m	kr2.6m	96%
Other	kr113k	kr1.2m	4%
Total Compensation	kr2.6m	kr3.8m	100%

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. Circio Holding has gone down a largely traditional route, paying Erik Wiklund a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Circio Holding ASA's Growth

Over the last three years, Circio Holding ASA has shrunk its earnings per share by 16% per year. It saw its revenue drop 99% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Circio Holding ASA Been A Good Investment?

With a total shareholder return of -96% over three years, Circio Holding ASA shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Circio Holding pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Circio Holding you should be aware of, and 4 of them are potentially serious.

Important note: Circio Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.