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Key Insights
- Marel hf to carry its Annual Common Assembly on twenty second of March
- Complete pay for CEO Arni Thordarson contains €787.0k wage
- Complete compensation is 36% beneath business common
- Marel hf’s EPS declined by 20% over the previous three years whereas complete shareholder return over the previous three years was 16%
Shareholders will most likely not be disenchanted by the sturdy outcomes at Marel hf. (ICE:MAREL) just lately and they are going to be preserving this in thoughts as they go into the AGM on twenty second of March. The main focus will most likely be on the longer term strategic initiatives that the board and administration will put in place to enhance the enterprise fairly than govt remuneration once they solid their votes on firm resolutions. In our evaluation beneath, we focus on why we predict the CEO compensation appears acceptable and the case for a elevate.
See our newest evaluation for Marel hf
Evaluating Marel hf.’s CEO Compensation With The Trade
Our knowledge signifies that Marel hf. has a market capitalization of Kr405b, and complete annual CEO compensation was reported as €1.3m for the yr to December 2022. We notice that is a small lower of seven.5% on final yr. We notice that the wage of €787.0k makes up a sizeable portion of the overall compensation obtained by the CEO.
On inspecting similar-sized corporations within the Europe Equipment business with market capitalizations between Kr284b and Kr910b, we found that the median CEO complete compensation of that group was €2.1m. Accordingly, Marel hf pays its CEO underneath the business median. Moreover, Arni Thordarson immediately owns Kr124m value of shares within the firm, implying that they’re deeply invested within the firm’s success.
| Part | 2022 | 2021 | Proportion (2022) |
| Wage | €787k | €728k | 60% |
| Different | €527k | €693k | 40% |
| Complete Compensation | €1.3m | €1.4m | 100% |
On an business stage, roughly 52% of complete compensation represents wage and 48% is different remuneration. It is attention-grabbing to notice that Marel hf pays out a better portion of remuneration by wage, in comparison with the business. If wage dominates complete compensation, it means that CEO compensation is leaning much less in direction of the variable element, which is normally linked with efficiency.
Marel hf.’s Development
During the last three years, Marel hf. has shrunk its earnings per share by 20% per yr. Within the final yr, its income is up 26%.
Buyers can be a bit cautious of corporations which have decrease EPS However in distinction the income progress is powerful, suggesting future potential for EPS progress. It is arduous to succeed in a conclusion about enterprise efficiency proper now. This can be one to look at. Historic efficiency can typically be a superb indicator on what’s arising subsequent however if you wish to peer into the corporate’s future you could be taken with this free visualization of analyst forecasts.
Has Marel hf. Been A Good Funding?
With a complete shareholder return of 16% over three years, Marel hf. shareholders would, usually, be moderately content material. However they most likely would not be so joyful as to assume the CEO must be paid greater than is regular, for corporations round this measurement.
In Abstract…
The corporate’s total efficiency, whereas not unhealthy, may very well be higher. Assuming the enterprise continues to develop at a superb clip, few shareholders would elevate any objections to the CEO’s remuneration. Slightly, buyers would extra doubtless need to have interaction on discussions associated to key strategic initiatives and future progress alternatives for the corporate and set their longer-term expectations.
We will be taught loads about an organization by learning its CEO compensation developments, together with taking a look at different points of the enterprise. We recognized 2 warning indicators for Marel hf (1 is regarding!) that try to be conscious of earlier than investing right here.
Arguably, enterprise high quality is rather more necessary than CEO compensation ranges. So try this free listing of attention-grabbing corporations which have HIGH return on fairness and low debt.
Valuation is complicated, however we’re serving to make it easy.
Discover out whether or not Marel hf is probably over or undervalued by testing our complete evaluation, which incorporates honest worth estimates, dangers and warnings, dividends, insider transactions and monetary well being.
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This text by Merely Wall St is normal in nature. We offer commentary based mostly on historic knowledge and analyst forecasts solely utilizing an unbiased methodology and our articles will not be meant to be monetary recommendation. It doesn’t represent a suggestion to purchase or promote any inventory, and doesn’t take account of your aims, or your monetary state of affairs. We goal to carry you long-term targeted evaluation pushed by elementary knowledge. Be aware that our evaluation could not issue within the newest price-sensitive firm bulletins or qualitative materials. Merely Wall St has no place in any shares talked about.
