Here's Why Shareholders May Want To Be Cautious With Increasing Wilh. Wilhelmsen Holding ASA's (OB:WWI) CEO Pay Packet

Key Insights

• Wilh. Wilhelmsen Holding's Annual General Meeting to take place on 30th of April
• Salary of US$527.5k is part of CEO Tom Wilhelmsen's total remuneration
• Total compensation is 393% above industry average
• Wilh. Wilhelmsen Holding's EPS grew by 93% over the past three years while total shareholder return over the past three years was 80%

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Under the guidance of CEO Tom Wilhelmsen, Wilh. Wilhelmsen Holding ASA (OB:WWI) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of April. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Wilh. Wilhelmsen Holding

Comparing Wilh. Wilhelmsen Holding ASA's CEO Compensation With The Industry

Our data indicates that Wilh. Wilhelmsen Holding ASA has a market capitalization of kr16b, and total annual CEO compensation was reported as US$2.0m for the year to December 2024. That's a notable increase of 19% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$527k.

In comparison with other companies in the Norwegian Shipping industry with market capitalizations ranging from kr11b to kr34b, the reported median CEO total compensation was US$397k. Hence, we can conclude that Tom Wilhelmsen is remunerated higher than the industry median. Furthermore, Tom Wilhelmsen directly owns kr225m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 51% of total compensation represents salary and 49% is other remuneration. Wilh. Wilhelmsen Holding pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Wilh. Wilhelmsen Holding ASA's Growth

Wilh. Wilhelmsen Holding ASA's earnings per share (EPS) grew 93% per year over the last three years. It achieved revenue growth of 11% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Wilh. Wilhelmsen Holding ASA Been A Good Investment?

Boasting a total shareholder return of 80% over three years, Wilh. Wilhelmsen Holding ASA has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Wilh. Wilhelmsen Holding that investors should think about before committing capital to this stock.

Switching gears from Wilh. Wilhelmsen Holding, 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.