Yahoo Finance Our Take On TGS-NOPEC Geophysical Company ASA's (OB:TGS) CEO Salary
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In 2016 Kristian Johansen was appointed CEO of TGS-NOPEC Geophysical Company ASA (OB:TGS). 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for TGS-NOPEC Geophysical
How Does Kristian Johansen's Compensation Compare With Similar Sized Companies?
According to our data, TGS-NOPEC Geophysical Company ASA has a market capitalization of øre25b, and pays its CEO total annual compensation worth US$2.2m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$558k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$1.0m.
As you can see, Kristian Johansen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TGS-NOPEC Geophysical Company ASA is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at TGS-NOPEC Geophysical has changed from year to year.
Is TGS-NOPEC Geophysical Company ASA Growing?
On average over the last three years, TGS-NOPEC Geophysical Company ASA has grown earnings per share (EPS) by 99% each year (using a line of best fit). It achieved revenue growth of 22% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has TGS-NOPEC Geophysical Company ASA Been A Good Investment?
Most shareholders would probably be pleased with TGS-NOPEC Geophysical Company ASA for providing a total return of 96% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount TGS-NOPEC Geophysical Company ASA pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying TGS-NOPEC Geophysical shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
