We Think Klaveness Combination Carriers ASA's (OB:KCC) CEO Compensation Looks Fair

Key Insights

• Klaveness Combination Carriers to hold its Annual General Meeting on 23rd of April
• Salary of US$534.0k is part of CEO Engebret Dahm's total remuneration
• The total compensation is similar to the average for the industry
• Klaveness Combination Carriers' total shareholder return over the past three years was 220% while its EPS grew by 66% over the past three years

The performance at Klaveness Combination Carriers ASA (OB:KCC) has been quite strong recently and CEO Engebret Dahm has played a role in it. Coming up to the next AGM on 23rd of April, shareholders would be keeping this in mind. 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. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Klaveness Combination Carriers

How Does Total Compensation For Engebret Dahm Compare With Other Companies In The Industry?

According to our data, Klaveness Combination Carriers ASA has a market capitalization of kr6.1b, and paid its CEO total annual compensation worth US$837k over the year to December 2023. We note that's an increase of 57% above last year. In particular, the salary of US$534.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Norwegian Shipping industry with market capitalizations ranging between kr2.2b and kr8.8b had a median total CEO compensation of US$920k. So it looks like Klaveness Combination Carriers compensates Engebret Dahm in line with the median for the industry. What's more, Engebret Dahm holds kr3.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$534k	US$370k	64%
Other	US$303k	US$164k	36%
Total Compensation	US$837k	US$534k	100%

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. According to our research, Klaveness Combination Carriers 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.

A Look at Klaveness Combination Carriers ASA's Growth Numbers

Klaveness Combination Carriers ASA has seen its earnings per share (EPS) increase by 66% a year over the past three years. It achieved revenue growth of 10% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Klaveness Combination Carriers ASA Been A Good Investment?

We think that the total shareholder return of 220%, over three years, would leave most Klaveness Combination Carriers ASA shareholders smiling. 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Klaveness Combination Carriers (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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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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.