Eldar Sætre has been the CEO of Equinor ASA (OB:EQNR) since 2014. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Eldar Sætre's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Equinor ASA has a market cap of kr562b, and reported total annual CEO compensation of US$2.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$1.6m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means Eldar Sætre receives fairly typical remuneration for the CEO of a large company. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Equinor has changed over time.
Is Equinor ASA Growing?
On average over the last three years, Equinor ASA has grown earnings per share (EPS) by 87% each year (using a line of best fit). It saw its revenue drop 5.7% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Equinor ASA Been A Good Investment?
Equinor ASA has served shareholders reasonably well, with a total return of 25% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Eldar Sætre is paid around what is normal the leaders of larger companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Equinor insiders are buying or selling shares.
If you want to buy a stock that is better than Equinor, this free list of high return, low debt companies is a great place to look.
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