Gyldendal ASA's (OB:GYL) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Gyldendal will host its Annual General Meeting on 17th of June
• Total pay for CEO John Thuv includes kr4.15m salary
• Total compensation is similar to the industry average
• Over the past three years, Gyldendal's EPS fell by 16% and over the past three years, the total loss to shareholders 21%

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Shareholders will probably not be too impressed with the underwhelming results at Gyldendal ASA (OB:GYL) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 17th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Gyldendal

How Does Total Compensation For John Thuv Compare With Other Companies In The Industry?

At the time of writing, our data shows that Gyldendal ASA has a market capitalization of kr978m, and reported total annual CEO compensation of kr5.3m for the year to December 2024. That's a notable increase of 8.9% on last year. Notably, the salary which is kr4.15m, represents most of the total compensation being paid.

In comparison with other companies in the Norway Specialty Retail industry with market capitalizations under kr2.0b, the reported median total CEO compensation was kr5.3m. From this we gather that John Thuv is paid around the median for CEOs in the industry.

On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. Gyldendal pays out 79% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Gyldendal ASA's Growth

Gyldendal ASA has reduced its earnings per share by 16% a year over the last three years. Its revenue is up 1.7% over the last year.

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. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Gyldendal ASA Been A Good Investment?

With a three year total loss of 21% for the shareholders, Gyldendal ASA would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which is concerning) in Gyldendal we think you should know about.

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.