How Much is Itera ASA's (OB:ITE) CEO Getting Paid?
The CEO of Itera ASA (OB:ITE) is Arne Mjøs. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Itera
How Does Arne Mjøs's Compensation Compare With Similar Sized Companies?
According to our data, Itera ASA has a market capitalization of kr691m, and paid its CEO total annual compensation worth kr3.8m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at kr2.3m. We took a group of companies with market capitalizations below kr1.8b, and calculated the median CEO total compensation to be kr3.0m.
That means Arne Mjøs 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.
You can see, below, how CEO compensation at Itera has changed over time.
Is Itera ASA Growing?
Itera ASA has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is up 7.2% over 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 modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Itera ASA Been A Good Investment?
I think that the total shareholder return of 124%, over three years, would leave most Itera ASA shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Arne Mjøs is paid around what is normal the leaders of comparable 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Itera (free visualization of insider trades).
Important note: Itera 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.
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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.
