Shareholders May Not Be So Generous With Cloudberry Clean Energy ASA's (OB:CLOUD) CEO Compensation And Here's Why

Key Insights

• Cloudberry Clean Energy's Annual General Meeting to take place on 23rd of April
• CEO Anders Lenborg's total compensation includes salary of kr4.20m
• The overall pay is 1,106% above the industry average
• Cloudberry Clean Energy's EPS grew by 28% over the past three years while total shareholder loss over the past three years was 32%

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In the past three years, the share price of Cloudberry Clean Energy ASA (OB:CLOUD) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 23rd of April could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Cloudberry Clean Energy

How Does Total Compensation For Anders Lenborg Compare With Other Companies In The Industry?

Our data indicates that Cloudberry Clean Energy ASA has a market capitalization of kr3.8b, and total annual CEO compensation was reported as kr12m for the year to December 2024. That's a notable decrease of 10% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at kr4.2m.

On comparing similar companies from the Norwegian Renewable Energy industry with market caps ranging from kr2.1b to kr8.5b, we found that the median CEO total compensation was kr986k. Hence, we can conclude that Anders Lenborg is remunerated higher than the industry median. What's more, Anders Lenborg holds kr17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr4.2m	kr4.0m	35%
Other	kr7.7m	kr9.2m	65%
Total Compensation	kr12m	kr13m	100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. Cloudberry Clean Energy sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Cloudberry Clean Energy ASA's Growth

Cloudberry Clean Energy ASA's earnings per share (EPS) grew 28% per year over the last three years. It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Cloudberry Clean Energy ASA Been A Good Investment?

With a total shareholder return of -32% over three years, Cloudberry Clean Energy ASA shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which shouldn't be ignored) in Cloudberry Clean Energy we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.