Yahoo Finance Is Gjensidige Forsikring ASA's (OB:GJF) CEO Salary Justified?
In 2003, Helge Baastad was appointed CEO of Gjensidige Forsikring ASA (OB:GJF). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Gjensidige Forsikring
How Does Helge Baastad's Compensation Compare With Similar Sized Companies?
According to our data, Gjensidige Forsikring ASA has a market capitalization of kr88b, and paid its CEO total annual compensation worth kr9.9m over the year to December 2019. We note that's an increase of 9.9% above last year. While we always look at total compensation first, we note that the salary component is less, at kr5.3m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of kr40b to kr120b. The median total CEO compensation was kr8.9m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Gjensidige Forsikring. Speaking on an industry level, we can see that nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. So it seems like there isn't a significant difference between Gjensidige Forsikring and the broader market, in terms of salary allocation in the overall compensation package.
So Helge Baastad is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at Gjensidige Forsikring has changed from year to year.
Is Gjensidige Forsikring ASA Growing?
Over the last three years Gjensidige Forsikring ASA has seen earnings per share (EPS) move in a positive direction by an average of 11% per year (using a line of best fit). In the last year, its revenue is down 4.2%.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Gjensidige Forsikring ASA Been A Good Investment?
Most shareholders would probably be pleased with Gjensidige Forsikring ASA for providing a total return of 41% over three years. 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...
Helge Baastad 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. Looking into other areas, we've picked out 1 warning sign for Gjensidige Forsikring that investors should think about before committing capital to this stock.
If you want to buy a stock that is better than Gjensidige Forsikring, this free list of high return, low debt companies is a great place to look.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
