What Did Aker Solutions ASA's (OB:AKSO) CEO Take Home Last Year?
Luis Antonio Gomes Araujo became the CEO of Aker Solutions ASA (OB:AKSO) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Aker Solutions
How Does Luis Antonio Gomes Araujo's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Aker Solutions ASA has a market cap of kr5.5b, and reported total annual CEO compensation of kr15m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at kr7.4m. When we examined a selection of companies with market caps ranging from kr3.7b to kr15b, we found the median CEO total compensation was kr5.0m.
It would therefore appear that Aker Solutions ASA pays Luis Antonio Gomes Araujo more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Aker Solutions, below.
Is Aker Solutions ASA Growing?
Aker Solutions ASA has increased its earnings per share (EPS) by an average of 69% a year, over the last three years (using a line of best fit). Its revenue is up 17% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Aker Solutions ASA Been A Good Investment?
With a three year total loss of 55%, Aker Solutions ASA would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Aker Solutions ASA pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Aker Solutions.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
