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Shareholders Will Probably Not Have Any Issues With Smartoptics Group AS' (OB:SMOP) CEO Compensation
Key Insights
- Smartoptics Group's Annual General Meeting to take place on 8th of May
- Salary of US$317.0k is part of CEO Magnus Grenfeldt's total remuneration
- The total compensation is similar to the average for the industry
- Smartoptics Group's EPS grew by 3.0% over the past three years while total shareholder return over the past three years was 51%
CEO Magnus Grenfeldt has done a decent job of delivering relatively good performance at Smartoptics Group AS (OB:SMOP) 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 8th of May. Here is our take on why we think the CEO compensation looks appropriate.
View our latest analysis for Smartoptics Group
Comparing Smartoptics Group AS' CEO Compensation With The Industry
At the time of writing, our data shows that Smartoptics Group AS has a market capitalization of kr1.8b, and reported total annual CEO compensation of US$374k for the year to December 2024. Notably, that's an increase of 25% over the year before. Notably, the salary which is US$317.0k, represents most of the total compensation being paid.
On examining similar-sized companies in the Norway Communications industry with market capitalizations between kr1.0b and kr4.2b, we discovered that the median CEO total compensation of that group was US$494k. From this we gather that Magnus Grenfeldt is paid around the median for CEOs in the industry. Furthermore, Magnus Grenfeldt directly owns kr39m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$317k | US$211k | 85% |
| Other | US$57k | US$89k | 15% |
| Total Compensation | US$374k | US$300k | 100% |
On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. According to our research, Smartoptics Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Smartoptics Group AS' Growth
Smartoptics Group AS has seen its earnings per share (EPS) increase by 3.0% a year over the past three years. Its revenue is down 5.3% over the previous year.
We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Smartoptics Group AS Been A Good Investment?
We think that the total shareholder return of 51%, over three years, would leave most Smartoptics Group AS shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Smartoptics Group that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About OB:SMOP
Smartoptics Group
Provides optical networking solutions and devices in the Americas, Europe, the Middle East, Africa, and the Asia–Pacific.
Exceptional growth potential with flawless balance sheet.
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