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Is DSV A/S (CPH:DSV) Excessively Paying Its CEO?

Jens Andersen has been the CEO of DSV A/S (CPH:DSV) since 2008. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for DSV

How Does Jens Andersen’s Compensation Compare With Similar Sized Companies?

According to our data, DSV A/S has a market capitalization of ø94.7b, and pays its CEO total annual compensation worth ø17m. That’s just a smallish increase of 4.3% on last year. When we examined a group of companies with market caps over ø52.6b, we found that their median CEO compensation was ø17m.

That means Jens Andersen receives fairly typical remuneration for the CEO of a large company. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at DSV has changed over time.

CPSE:DSV CEO Compensation November 13th 18
CPSE:DSV CEO Compensation November 13th 18

Is DSV A/S Growing?

On average over the last three years, DSV A/S has grown earnings per share (EPS) by 25% each year. Its revenue is up 4.9% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has DSV A/S Been A Good Investment?

Boasting a total shareholder return of 88% over three years, DSV A/S has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Jens Andersen is paid around what is normal the leaders of larger companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling DSV A/S (free visualization of insider trades).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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