Shareholders May Not Be So Generous With Elmera Group ASA's (OB:ELMRA) CEO Compensation And Here's Why

Key Insights

• Elmera Group's Annual General Meeting to take place on 30th of April
• CEO Rolf Barmen's total compensation includes salary of kr3.71m
• The overall pay is 376% above the industry average
• Elmera Group's EPS grew by 13% over the past three years while total shareholder return over the past three years was 82%

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CEO Rolf Barmen has done a decent job of delivering relatively good performance at Elmera Group ASA (OB:ELMRA) 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 may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Elmera Group

Comparing Elmera Group ASA's CEO Compensation With The Industry

At the time of writing, our data shows that Elmera Group ASA has a market capitalization of kr3.8b, and reported total annual CEO compensation of kr6.1m for the year to December 2024. We note that's an increase of 28% above last year. We note that the salary portion, which stands at kr3.71m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Norway Electric Utilities industry with market capitalizations ranging from kr2.1b to kr8.4b, the reported median CEO total compensation was kr1.3m. This suggests that Rolf Barmen is paid more than the median for the industry. Moreover, Rolf Barmen also holds kr3.1m worth of Elmera Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	kr3.7m	kr3.5m	60%
Other	kr2.4m	kr1.3m	40%
Total Compensation	kr6.1m	kr4.8m	100%

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. Elmera Group pays out 60% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Elmera Group ASA's Growth Numbers

Over the past three years, Elmera Group ASA has seen its earnings per share (EPS) grow by 13% per year. In the last year, its revenue is down 35%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Elmera Group ASA Been A Good Investment?

Boasting a total shareholder return of 82% over three years, Elmera Group ASA has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Elmera Group (3 don't sit too well with us!) that you should be aware of before investing here.

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.