Here's What We Learned About The CEO Pay At Itera ASA (OB:ITERA)

Arne Mjøs is the CEO of Itera ASA (OB:ITERA), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Itera pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Itera

Comparing Itera ASA's CEO Compensation With the industry

Our data indicates that Itera ASA has a market capitalization of kr1.1b, and total annual CEO compensation was reported as kr3.7m for the year to December 2019. That's a slight decrease of 3.1% on the prior year. Notably, the salary which is kr2.35m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under kr1.7b, the reported median total CEO compensation was kr2.9m. This suggests that Itera remunerates its CEO largely in line with the industry average. What's more, Arne Mjøs holds kr334m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. There isn't a significant difference between Itera and the broader market, in terms of salary allocation in the overall compensation package. 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.

Itera ASA's Growth

Itera ASA has seen its earnings per share (EPS) increase by 22% a year over the past three years. It achieved revenue growth of 7.4% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Itera ASA Been A Good Investment?

We think that the total shareholder return of 135%, over three years, would leave most Itera ASA shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As we touched on above, Itera ASA is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Itera that investors should think about before committing capital to this stock.

Switching gears from Itera, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. 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.
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