David Wells is the CEO of AqualisBraemar ASA (OB:AQUA). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for AqualisBraemar
How Does David Wells's Compensation Compare With Similar Sized Companies?
According to our data, AqualisBraemar ASA has a market capitalization of kr245m, and paid its CEO total annual compensation worth US$351k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$231k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$385k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. AqualisBraemar does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
So David Wells receives a similar amount to the median CEO pay, amongst 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. You can see a visual representation of the CEO compensation at AqualisBraemar, below.
Is AqualisBraemar ASA Growing?
AqualisBraemar ASA has seen earnings per share (EPS) move positively by an average of 85% a year, over the last three years (using a line of best fit). It achieved revenue growth of 51% over the last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has AqualisBraemar ASA Been A Good Investment?
AqualisBraemar ASA has served shareholders reasonably well, with a total return of 12% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
David Wells is paid around what is normal for the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is an important area to keep your eyes on, but we've also identified 5 warning signs for AqualisBraemar (2 are concerning!) that you should be aware of before investing here.
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.
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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.
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