Shareholders Would Not Be Objecting To MPC Container Ships ASA's (OB:MPCC) CEO Compensation And Here's Why

Key Insights

• MPC Container Ships to hold its Annual General Meeting on 17th of April
• Salary of US$237.9k is part of CEO Constantin Baack's total remuneration
• The overall pay is comparable to the industry average
• MPC Container Ships' EPS grew by 67% over the past three years while total shareholder return over the past three years was 166%

It would be hard to discount the role that CEO Constantin Baack has played in delivering the impressive results at MPC Container Ships ASA (OB:MPCC) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 17th of April. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for MPC Container Ships

How Does Total Compensation For Constantin Baack Compare With Other Companies In The Industry?

At the time of writing, our data shows that MPC Container Ships ASA has a market capitalization of kr5.7b, and reported total annual CEO compensation of US$1.0m for the year to December 2023. That's a notable increase of 83% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$238k.

On comparing similar companies from the Norwegian Shipping industry with market caps ranging from kr2.2b to kr8.7b, we found that the median CEO total compensation was US$920k. So it looks like MPC Container Ships compensates Constantin Baack in line with the median for the industry. Furthermore, Constantin Baack directly owns kr843k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$238k	US$233k	24%
Other	US$765k	US$316k	76%
Total Compensation	US$1.0m	US$549k	100%

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. MPC Container Ships sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

MPC Container Ships ASA's Growth

Over the past three years, MPC Container Ships ASA has seen its earnings per share (EPS) grow by 67% 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. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MPC Container Ships ASA Been A Good Investment?

Boasting a total shareholder return of 166% over three years, MPC Container Ships ASA has done well by shareholders. 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for MPC Container Ships (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from MPC Container Ships, 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.