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Is Össur hf. (CPH:OSSR) Excessively Paying Its CEO?

Simply Wall St

Jón Sigurdsson has been the CEO of Össur hf. (CPH:OSSR) since 1996. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Össur hf

How Does Jón Sigurdsson's Compensation Compare With Similar Sized Companies?

Our data indicates that Össur hf. is worth ø22b, and total annual CEO compensation was reported as 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$1.0m. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$1.6m.

So Jón Sigurdsson 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.

You can see a visual representation of the CEO compensation at Össur hf, below.

CPSE:OSSR CEO Compensation, December 4th 2019

Is Össur hf. Growing?

On average over the last three years, Össur hf. has grown earnings per share (EPS) by 24% each year (using a line of best fit). It achieved revenue growth of 13% over the 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 decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Össur hf. Been A Good Investment?

Most shareholders would probably be pleased with Össur hf. for providing a total return of 127% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Jón Sigurdsson is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Össur hf.

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.