It Looks Like Shareholders Would Probably Approve Odfjell SE's (OB:ODF) CEO Compensation Package

Key Insights

• Odfjell's Annual General Meeting to take place on 7th of May
• Total pay for CEO Harald Fotland includes US$540.0k salary
• The overall pay is comparable to the industry average
• Over the past three years, Odfjell's EPS grew by 63% and over the past three years, the total shareholder return was 208%

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We have been pretty impressed with the performance at Odfjell SE (OB:ODF) recently and CEO Harald Fotland deserves a mention for their role in it. Coming up to the next AGM on 7th of May, 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.

Check out our latest analysis for Odfjell

How Does Total Compensation For Harald Fotland Compare With Other Companies In The Industry?

Our data indicates that Odfjell SE has a market capitalization of kr7.7b, and total annual CEO compensation was reported as US$1.1m for the year to December 2024. That's a fairly small increase of 3.0% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$540k.

For comparison, other companies in the Norwegian Shipping industry with market capitalizations ranging between kr4.2b and kr17b had a median total CEO compensation of US$1.1m. So it looks like Odfjell compensates Harald Fotland in line with the median for the industry. Moreover, Harald Fotland also holds kr8.8m worth of Odfjell stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. It's interesting to note that Odfjell allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Odfjell SE's Growth Numbers

Odfjell SE's earnings per share (EPS) grew 63% per year over the last three years. Its revenue is up 4.6% 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 modest revenue growth, suggesting the underlying business is healthy. 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 Odfjell SE Been A Good Investment?

We think that the total shareholder return of 208%, over three years, would leave most Odfjell SE 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...

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

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Odfjell (1 is concerning!) that you should be aware of before investing here.

Important note: Odfjell 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.