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Is Telenor ASA (OB:TEL) Overpaying Its CEO?

Simply Wall St

Sigve Brekke became the CEO of Telenor ASA (OB:TEL) in 2015. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for Telenor

How Does Sigve Brekke's Compensation Compare With Similar Sized Companies?

According to our data, Telenor ASA has a market capitalization of kr263b, and pays its CEO total annual compensation worth kr16m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at kr6.7m. We took a group of companies with market capitalizations over kr72b, and calculated the median CEO total compensation to be kr15m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.

So Sigve Brekke 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 Telenor, below.

OB:TEL CEO Compensation, August 18th 2019

Is Telenor ASA Growing?

Over the last three years Telenor ASA has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). In the last year, its revenue changed by just 0.5%.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has Telenor ASA Been A Good Investment?

Boasting a total shareholder return of 52% over three years, Telenor ASA has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Sigve Brekke is paid around the same as most CEOs of large companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Telenor.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.