In 2008 Per Koch was appointed CEO of Polaris Media ASA (OB:POL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Per Koch's Compensation Compare With Similar Sized Companies?
According to our data, Polaris Media ASA has a market capitalization of kr1.7b, and paid its CEO total annual compensation worth kr4.9m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at kr3.0m. We looked at a group of companies with market capitalizations from kr917m to kr3.7b, and the median CEO total compensation was kr3.9m.
So Per Koch receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Polaris Media has changed from year to year.
Is Polaris Media ASA Growing?
Over the last three years Polaris Media ASA has shrunk its earnings per share by an average of 28% per year (measured with a line of best fit). Its revenue is up 32% over last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Polaris Media ASA Been A Good Investment?
Most shareholders would probably be pleased with Polaris Media ASA for providing a total return of 140% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Per Koch is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. So you may want to check if insiders are buying Polaris Media shares with their own money (free access).
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 firstname.lastname@example.org. 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.