Shareholders May Not Be So Generous With Atea ASA's (OB:ATEA) CEO Compensation And Here's Why

Key Insights

• Atea will host its Annual General Meeting on 29th of April
• CEO Steinar Sonsteby's total compensation includes salary of kr5.90m
• Total compensation is 94% above industry average
• Over the past three years, Atea's EPS grew by 0.5% and over the past three years, the total shareholder return was 28%

We've discovered 1 warning sign about Atea. View them for free.

Under the guidance of CEO Steinar Sonsteby, Atea ASA (OB:ATEA) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 29th of April. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Atea

Comparing Atea ASA's CEO Compensation With The Industry

Our data indicates that Atea ASA has a market capitalization of kr15b, and total annual CEO compensation was reported as kr16m for the year to December 2024. That's a slight decrease of 5.3% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr5.9m.

On comparing similar companies from the Norwegian IT industry with market caps ranging from kr10b to kr33b, we found that the median CEO total compensation was kr8.4m. This suggests that Steinar Sonsteby is paid more than the median for the industry. What's more, Steinar Sonsteby holds kr17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr5.9m	kr5.5m	36%
Other	kr10m	kr12m	64%
Total Compensation	kr16m	kr17m	100%

Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. Atea sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Atea ASA's Growth

Earnings per share at Atea ASA are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue changed by just 0.3%.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Atea ASA Been A Good Investment?

With a total shareholder return of 28% over three years, Atea ASA shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 1 warning sign for Atea that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.