Yahoo Finance Here's What We Think About Ørsted A/S's (CPH:ORSTED) CEO Pay
Henrik Poulsen became the CEO of Ørsted A/S (CPH:ORSTED) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for Ørsted
How Does Henrik Poulsen's Compensation Compare With Similar Sized Companies?
According to our data, Ørsted A/S has a market capitalization of ø274b, and paid its CEO total annual compensation worth ø17m over the year to December 2019. That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ø11m. We looked at a group of companies with market capitalizations over ø53b and the median CEO total compensation was ø21m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
That means Henrik Poulsen receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Ørsted has changed over time.
Is Ørsted A/S Growing?
Ørsted A/S has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). Its revenue is down 6.8% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Ørsted A/S Been A Good Investment?
I think that the total shareholder return of 170%, over three years, would leave most Ørsted A/S shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Remuneration for Henrik Poulsen is close enough to the median pay for a CEO of a large company .
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! Shifting gears from CEO pay for a second, we've picked out 2 warning signs for Ørsted that investors should be aware of in a dynamic business environment.
Important note: Ørsted 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.
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.
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