It Looks Like Shareholders Would Probably Approve Nordic Semiconductor ASA's (OB:NOD) CEO Compensation Package

Key Insights

• Nordic Semiconductor's Annual General Meeting to take place on 20th of April
• Salary of US$461.0k is part of CEO Svenn-Tore Larsen's total remuneration
• The overall pay is comparable to the industry average
• Nordic Semiconductor's EPS grew by 148% over the past three years while total shareholder return over the past three years was 186%

The performance at Nordic Semiconductor ASA (OB:NOD) has been quite strong recently and CEO Svenn-Tore Larsen has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of April. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Nordic Semiconductor

How Does Total Compensation For Svenn-Tore Larsen Compare With Other Companies In The Industry?

Our data indicates that Nordic Semiconductor ASA has a market capitalization of kr28b, and total annual CEO compensation was reported as US$1.1m for the year to December 2022. That's a modest increase of 4.4% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$461k.

On examining similar-sized companies in the Norway Semiconductor industry with market capitalizations between kr21b and kr67b, we discovered that the median CEO total compensation of that group was US$1.1m. This suggests that Nordic Semiconductor remunerates its CEO largely in line with the industry average. What's more, Svenn-Tore Larsen holds kr282m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	US$461k	US$488k	43%
Other	US$612k	US$540k	57%
Total Compensation	US$1.1m	US$1.0m	100%

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. Our data reveals that Nordic Semiconductor allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Nordic Semiconductor ASA's Growth

Over the past three years, Nordic Semiconductor ASA has seen its earnings per share (EPS) grow by 148% per year. It achieved revenue growth of 27% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Nordic Semiconductor ASA Been A Good Investment?

Boasting a total shareholder return of 186% over three years, Nordic Semiconductor ASA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Nordic Semiconductor.

Important note: Nordic Semiconductor 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.

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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.