Sverre Hurum has been the CEO of Bouvet ASA (OB:BOUVET) since 2003. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Sverre Hurum's Compensation Compare With Similar Sized Companies?
Our data indicates that Bouvet ASA is worth kr4.7b, and total annual CEO compensation was reported as kr4.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at kr3.1m. We examined companies with market caps from kr1.9b to kr7.4b, and discovered that the median CEO total compensation of that group was kr4.9m.
That means Sverre Hurum receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Bouvet has changed over time.
Is Bouvet ASA Growing?
Bouvet ASA has increased its earnings per share (EPS) by an average of 29% a year, over the last three years (using a line of best fit). It achieved revenue growth of 17% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Bouvet ASA Been A Good Investment?
I think that the total shareholder return of 260%, over three years, would leave most Bouvet ASA shareholders smiling. 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.
Remuneration for Sverre Hurum is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Bouvet shares (free trial).
If you want to buy a stock that is better than Bouvet, this free list of high return, low debt companies is a great place to look.
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