Here's Why It's Unlikely That Crown Energy AB (publ)'s (NGM:CRWN) CEO Will See A Pay Rise This Year

Key Insights

• Crown Energy will host its Annual General Meeting on 10th of June
• CEO Yoav Ben-Eli's total compensation includes salary of kr7.29m
• Total compensation is 128% above industry average
• Crown Energy's EPS declined by 36% over the past three years while total shareholder loss over the past three years was 37%

The results at Crown Energy AB (publ) (NGM:CRWN) have been quite disappointing recently and CEO Yoav Ben-Eli bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 10th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Crown Energy

Comparing Crown Energy AB (publ)'s CEO Compensation With The Industry

Our data indicates that Crown Energy AB (publ) has a market capitalization of kr425m, and total annual CEO compensation was reported as kr7.3m for the year to December 2023. This means that the compensation hasn't changed much from last year. Notably, the salary of kr7.3m is the entirety of the CEO compensation.

In comparison with other companies in the Sweden Energy Services industry with market capitalizations under kr2.1b, the reported median total CEO compensation was kr3.2m. Hence, we can conclude that Yoav Ben-Eli is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	kr7.3m	kr7.1m	100%
Other	-	-	-
Total Compensation	kr7.3m	kr7.1m	100%

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. On a company level, Crown Energy prefers to reward its CEO through a salary, opting not to pay Yoav Ben-Eli through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Crown Energy AB (publ)'s Growth Numbers

Over the last three years, Crown Energy AB (publ) has shrunk its earnings per share by 36% per year. It saw its revenue drop 5.7% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Crown Energy AB (publ) Been A Good Investment?

With a total shareholder return of -37% over three years, Crown Energy AB (publ) shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Crown Energy rewards its CEO solely through a salary, ignoring non-salary benefits completely. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 5 warning signs (and 1 which is significant) in Crown Energy we think you should know about.

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.