Shareholders Will Probably Hold Off On Increasing Viking Supply Ships AB (publ)'s (STO:VSSAB B) CEO Compensation For The Time Being

Key Insights

• Viking Supply Ships' Annual General Meeting to take place on 26th of March
• Salary of kr3.19m is part of CEO Trond Myklebust's total remuneration
• The overall pay is 126% above the industry average
• Viking Supply Ships' total shareholder return over the past three years was 45% while its EPS grew by 48% over the past three years

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Under the guidance of CEO Trond Myklebust, Viking Supply Ships AB (publ) (STO:VSSAB B) 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 26th of March. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Viking Supply Ships

How Does Total Compensation For Trond Myklebust Compare With Other Companies In The Industry?

According to our data, Viking Supply Ships AB (publ) has a market capitalization of kr1.5b, and paid its CEO total annual compensation worth kr4.5m over the year to December 2024. That's a notable increase of 19% on last year. Notably, the salary which is kr3.19m, represents most of the total compensation being paid.

For comparison, other companies in the Sweden Shipping industry with market capitalizations below kr2.0b, reported a median total CEO compensation of kr2.0m. Hence, we can conclude that Trond Myklebust is remunerated higher than the industry median. Furthermore, Trond Myklebust directly owns kr684k worth of shares in the company.

Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. Viking Supply Ships pays out 71% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Viking Supply Ships AB (publ)'s Growth Numbers

Viking Supply Ships AB (publ)'s earnings per share (EPS) grew 48% per year over the last three years. Its revenue is up 89% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Viking Supply Ships AB (publ) Been A Good Investment?

Boasting a total shareholder return of 45% over three years, Viking Supply Ships AB (publ) 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Viking Supply Ships that investors should be aware of in a dynamic business environment.

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.