Solstad Offshore ASA's (OB:SOFF) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Solstad Offshore to hold its Annual General Meeting on 23rd of April
• Total pay for CEO Lars Solstad includes kr5.80m salary
• The overall pay is comparable to the industry average
• Solstad Offshore's total shareholder return over the past three years was 124% while its EPS grew by 112% over the past three years

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It would be hard to discount the role that CEO Lars Solstad has played in delivering the impressive results at Solstad Offshore ASA (OB:SOFF) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 23rd of April. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Solstad Offshore

How Does Total Compensation For Lars Solstad Compare With Other Companies In The Industry?

According to our data, Solstad Offshore ASA has a market capitalization of kr3.1b, and paid its CEO total annual compensation worth kr8.1m over the year to December 2024. We note that's a small decrease of 5.1% on last year. In particular, the salary of kr5.80m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Norwegian Energy Services industry with market capitalizations between kr1.1b and kr4.3b, we discovered that the median CEO total compensation of that group was kr8.1m. So it looks like Solstad Offshore compensates Lars Solstad in line with the median for the industry. What's more, Lars Solstad holds kr227m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	kr5.8m	kr5.5m	72%
Other	kr2.3m	kr3.1m	28%
Total Compensation	kr8.1m	kr8.5m	100%

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. Although there is a difference in how total compensation is set, Solstad Offshore more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Solstad Offshore ASA's Growth Numbers

Solstad Offshore ASA has seen its earnings per share (EPS) increase by 112% a year over the past three years. Its revenue is down 63% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Solstad Offshore ASA Been A Good Investment?

We think that the total shareholder return of 124%, over three years, would leave most Solstad Offshore ASA 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Solstad Offshore (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.