Shareholders May Not Be So Generous With Orrön Energy AB (publ)'s (STO:ORRON) CEO Compensation And Here's Why

Key Insights

• Orrön Energy's Annual General Meeting to take place on 5th of May
• CEO Daniel Fitzgerald's total compensation includes salary of €444.0k
• The overall pay is 313% above the industry average
• Orrön Energy's EPS declined by 34% over the past three years while total shareholder loss over the past three years was 99%

We've discovered 2 warning signs about Orrön Energy. View them for free.

In the past three years, the share price of Orrön Energy AB (publ) (STO:ORRON) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 5th of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

Check out our latest analysis for Orrön Energy

How Does Total Compensation For Daniel Fitzgerald Compare With Other Companies In The Industry?

Our data indicates that Orrön Energy AB (publ) has a market capitalization of kr1.3b, and total annual CEO compensation was reported as €1.7m for the year to December 2024. That's a notable increase of 13% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €444k.

For comparison, other companies in the Sweden Renewable Energy industry with market capitalizations below kr1.9b, reported a median total CEO compensation of €402k. Accordingly, our analysis reveals that Orrön Energy AB (publ) pays Daniel Fitzgerald north of the industry median. What's more, Daniel Fitzgerald holds kr2.4m 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	€444k	€422k	27%
Other	€1.2m	€1.0m	73%
Total Compensation	€1.7m	€1.5m	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. Orrön Energy sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

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

Orrön Energy AB (publ) has reduced its earnings per share by 34% a year over the last three years. In the last year, its revenue is up 29%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Orrön Energy AB (publ) Been A Good Investment?

The return of -99% over three years would not have pleased Orrön Energy AB (publ) shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Orrön Energy (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Orrön Energy is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.