Shareholders will most likely find the remuneration of the CEO of Carlsberg A/S (CPH:CARL B) acceptable
Under the leadership of CEO Cees´t Hart, Carlsberg A/S (CPH:CARL B) has done relatively well recently. In light of this performance, CEO compensation is unlikely to be the main focus of shareholders at their annual general meeting on March 14, 2022. We present our business case for why we believe CEO compensation seems fair.
See our latest analysis for Carlsberg
Carlsberg A/S CEO compensation comparison with the industry
Our data indicates that Carlsberg A/S has a market capitalization of 117 billion kr and the total annual remuneration of the CEO was 47 million kr for the year to December 2021. These include an increase 17% over the previous year. We think the total compensation is more important, but our data shows that the CEO salary is lower, at 13 million kr.
Comparing similar companies in the industry with market capitalizations above 55 billion kr, we found that the median total compensation for CEOs was 50 million kr. So it looks like Carlsberg is compensating Cees ´t Hart in line with the industry median. Additionally, Cees ´t Hart owns 22 million kr worth of shares in the company in his own name, indicating that they have a lot of skin in the game.
|Making up||2021||2020||Percentage (2021)|
|Salary||13 million kr||13 million kr||28%|
|Other||34 million kr||27 million kr||72%|
|The total compensation||47 million kr||40 million kr||100%|
At the industry level, about 59% of total compensation represents salary and 41% other compensation. Carlsberg pays a modest chunk of compensation through salary, compared to the industry as a whole. If total compensation is skewed towards non-salary benefits, this indicates that CEO compensation is tied to company performance.
A look at Carlsberg A/S growth figures
Carlsberg A/S has seen its earnings per share (EPS) increase by 12% per year over the past three years. Last year, its turnover increased by 14%.
This demonstrates that the company has improved recently and is good news for shareholders. It’s also good to see decent revenue growth over the past year, which suggests the business is healthy and growing. In the future, you might want to check out this free visual report on analyst forecasts for the future profits of the company.
Was Carlsberg A/S a good investment?
With a three-year total shareholder return of 6.2%, Carlsberg A/S has done well with shareholders, but there is always room for improvement. In light of this, investors will likely want to see an improvement in their returns before feeling generous about increasing CEO pay.
Seeing that the company performed decently, only a few shareholders, if any, might have questions about CEO compensation at the upcoming AGM. Despite the satisfactory results, we still believe that any proposal to increase CEO compensation will be considered on a case-by-case basis and linked to performance results.
While paying attention to CEO compensation is important, investors should also consider other elements of the business. That’s why we dug and identified 1 warning sign for Carlsberg which you should be aware of before investing.
Important note: Carlsberg is an exciting stock, but we understand that investors may be looking for a clean balance sheet and exceptional returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.