We Think Shareholders Will Probably Be Generous With Norbit ASA's (OB:NORBT) CEO Compensation

Key Insights

• Norbit's Annual General Meeting to take place on 6th of May
• Total pay for CEO Per Weisethaunet includes kr3.30m salary
• The overall pay is comparable to the industry average
• Over the past three years, Norbit's EPS grew by 86% and over the past three years, the total shareholder return was 222%

It would be hard to discount the role that CEO Per Weisethaunet has played in delivering the impressive results at Norbit ASA (OB:NORBT) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 6th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and 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 Norbit

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

Our data indicates that Norbit ASA has a market capitalization of kr4.2b, and total annual CEO compensation was reported as kr5.0m for the year to December 2023. Notably, that's an increase of 11% over the year before. We note that the salary portion, which stands at kr3.30m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Norwegian Electronic industry with market caps ranging from kr2.2b to kr8.8b, we found that the median CEO total compensation was kr6.7m. From this we gather that Per Weisethaunet is paid around the median for CEOs in the industry. Moreover, Per Weisethaunet also holds kr489m worth of Norbit stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	kr3.3m	kr3.1m	66%
Other	kr1.7m	kr1.4m	34%
Total Compensation	kr5.0m	kr4.5m	100%

Talking in terms of the industry, salary represented approximately 66% of total compensation out of all the companies we analyzed, while other remuneration made up 34% of the pie. Our data reveals that Norbit allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Norbit ASA's Growth

Norbit ASA's earnings per share (EPS) grew 86% per year over the last three years. In the last year, its revenue is up 30%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Norbit ASA Been A Good Investment?

Most shareholders would probably be pleased with Norbit ASA for providing a total return of 222% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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.

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

Switching gears from Norbit, 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. 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.