Here's What We Think About Odfjell SE's (OB:ODF) CEO Pay
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Kristian Mørch became the CEO of Odfjell SE (OB:ODF) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
See our latest analysis for Odfjell
How Does Kristian Mørch's Compensation Compare With Similar Sized Companies?
Our data indicates that Odfjell SE is worth øre2.2b, and total annual CEO compensation is US$1.1m. (This number is for the twelve months until December 2018). That's less than last year. While we always look at total compensation first, we note that the salary component is less, at US$799k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$447k.
It would therefore appear that Odfjell SE pays Kristian Mørch more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Odfjell has changed over time.
Is Odfjell SE Growing?
On average over the last three years, Odfjell SE has shrunk earnings per share by 92% each year (measured with a line of best fit). In the last year, its revenue is up 1.9%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Odfjell SE Been A Good Investment?
Odfjell SE has not done too badly by shareholders, with a total return of 9.0%, 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.
In Summary...
We compared the total CEO remuneration paid by Odfjell SE, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
And shareholder returns are decent but not great. So you may want to delve deeper, because we don't think the CEO pay is too low. Shareholders may want to check for free if Odfjell insiders are buying or selling shares.
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.
