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How Should Investors React To AKVA Group ASA's (OB:AKVA) CEO Pay?

Simply Wall St

Hallvard Muri has been the CEO of AKVA Group ASA (OB:AKVA) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for AKVA Group

How Does Hallvard Muri's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that AKVA Group ASA has a market cap of kr2.5b, and reported total annual CEO compensation of kr3.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr2.6m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of kr905m to kr3.6b. The median total CEO compensation was kr3.9m.

That means Hallvard Muri receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at AKVA Group has changed from year to year.

OB:AKVA CEO Compensation, October 13th 2019

Is AKVA Group ASA Growing?

Over the last three years AKVA Group ASA has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). Its revenue is up 34% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has AKVA Group ASA Been A Good Investment?

AKVA Group ASA has generated a total shareholder return of 5.8% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Hallvard Muri is paid around the same as most CEOs of similar size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if AKVA Group insiders are buying or selling shares.

Important note: AKVA Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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. Thank you for reading.