Shareholders Would Not Be Objecting To Norbit ASA's (OB:NORBT) CEO Compensation And Here's Why

Key Insights

• Norbit will host its Annual General Meeting on 6th of May
• Salary of kr3.60m is part of CEO Per Weisethaunet's total remuneration
• The total compensation is similar to the average for the industry
• Norbit's total shareholder return over the past three years was 455% while its EPS grew by 66% over the past three years

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We have been pretty impressed with the performance at Norbit ASA (OB:NORBT) recently and CEO Per Weisethaunet deserves a mention for their role in it. Coming up to the next AGM on 6th of May, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Norbit

How Does Total Compensation For Per Weisethaunet Compare With Other Companies In The Industry?

According to our data, Norbit ASA has a market capitalization of kr8.8b, and paid its CEO total annual compensation worth kr7.7m over the year to December 2024. That's a notable increase of 54% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at kr3.6m.

In comparison with other companies in the Norwegian Electronic industry with market capitalizations ranging from kr4.2b to kr17b, the reported median CEO total compensation was kr10.0m. This suggests that Norbit remunerates its CEO largely in line with the industry average. Moreover, Per Weisethaunet also holds kr548k worth of Norbit stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	kr3.6m	kr3.3m	47%
Other	kr4.1m	kr1.7m	53%
Total Compensation	kr7.7m	kr5.0m	100%

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. Norbit is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Norbit ASA's Growth Numbers

Over the past three years, Norbit ASA has seen its earnings per share (EPS) grow by 66% per year. It achieved revenue growth of 15% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Norbit ASA Been A Good Investment?

Boasting a total shareholder return of 455% over three years, Norbit ASA has done well by shareholders. 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...

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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

Whatever your view on compensation, you might want to check if insiders are buying or selling Norbit shares (free trial).

Important note: Norbit 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.