Key Insights
- Kitron to hold its Annual General Meeting on 24th of April
- Salary of €312.8k is part of CEO Lars Nilsson's total remuneration
- Total compensation is 37% above industry average
- Kitron's total shareholder return over the past three years was 167% while its EPS grew by 18% over the past three years
Under the guidance of CEO Lars Nilsson, Kitron ASA (OB:KIT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Kitron
How Does Total Compensation For Lars Nilsson Compare With Other Companies In The Industry?
According to our data, Kitron ASA has a market capitalization of kr11b, and paid its CEO total annual compensation worth €1.2m over the year to December 2024. Notably, that's a decrease of 40% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €313k.
For comparison, other companies in the Norwegian Electronic industry with market capitalizations ranging between kr4.2b and kr17b had a median total CEO compensation of €847k. Hence, we can conclude that Lars Nilsson is remunerated higher than the industry median. What's more, Lars Nilsson holds kr116m 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 | €313k | €321k | 27% |
| Other | €850k | €1.6m | 73% |
| Total Compensation | €1.2m | €1.9m | 100% |
On an industry level, around 47% of total compensation represents salary and 53% is other remuneration. Kitron 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.
Kitron ASA's Growth
Kitron ASA's earnings per share (EPS) grew 18% per year over the last three years. In the last year, its revenue is down 17%.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Kitron ASA Been A Good Investment?
Boasting a total shareholder return of 167% over three years, Kitron 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...
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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Kitron that investors should be aware of in a dynamic business environment.
Switching gears from Kitron, 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.
Valuation is complex, but we're here to simplify it.
Discover if Kitron 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.