Shareholders Will Probably Not Have Any Issues With Olav Thon Eiendomsselskap ASA's (OB:OLT) CEO Compensation
Key Insights
- Olav Thon Eiendomsselskap's Annual General Meeting to take place on 14th of May
- Salary of kr2.56m is part of CEO Dag Tangevald-Jensen's total remuneration
- Total compensation is 82% below industry average
- Olav Thon Eiendomsselskap's EPS declined by 15% over the past three years while total shareholder return over the past three years was 55%
The performance at Olav Thon Eiendomsselskap ASA (OB:OLT) has been rather lacklustre of late and shareholders may be wondering what CEO Dag Tangevald-Jensen is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 14th of May. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.
Check out our latest analysis for Olav Thon Eiendomsselskap
Comparing Olav Thon Eiendomsselskap ASA's CEO Compensation With The Industry
At the time of writing, our data shows that Olav Thon Eiendomsselskap ASA has a market capitalization of kr26b, and reported total annual CEO compensation of kr2.6m for the year to December 2024. That's a modest increase of 5.2% on the prior year. Notably, the salary which is kr2.56m, represents most of the total compensation being paid.
On examining similar-sized companies in the Norway Real Estate industry with market capitalizations between kr21b and kr66b, we discovered that the median CEO total compensation of that group was kr15m. This suggests that Dag Tangevald-Jensen is paid below the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | kr2.6m | kr2.4m | 99% |
| Other | kr39k | kr37k | 1% |
| Total Compensation | kr2.6m | kr2.5m | 100% |
On an industry level, around 95% of total compensation represents salary and 5% is other remuneration. Investors will find it interesting that Olav Thon Eiendomsselskap pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Olav Thon Eiendomsselskap ASA's Growth
Over the last three years, Olav Thon Eiendomsselskap ASA has shrunk its earnings per share by 15% per year. In the last year, its revenue is up 4.8%.
Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Olav Thon Eiendomsselskap ASA Been A Good Investment?
Most shareholders would probably be pleased with Olav Thon Eiendomsselskap ASA for providing a total return of 55% over three years. 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.
To Conclude...
Dag receives almost all of their compensation through a salary. Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean these strong returns may not continue. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.
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 2 warning signs for Olav Thon Eiendomsselskap that investors should think about before committing capital to this stock.
Important note: Olav Thon Eiendomsselskap 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.
Valuation is complex, but we're here to simplify it.
Discover if Olav Thon Eiendomsselskap might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.