Here’s why shareholders should take a closer look at the CEO compensation package of NorCom Information Technology GmbH & Co. KGaA (ETR: NC5A)


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NorCom Information Technology GmbH & Co. KGaA (ETR: NC5A) hasn’t performed well recently and CEO Viggo Nordbakk will likely have to improve his game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 10 December 2021. They will also have the opportunity to influence management decision-making by voting on resolutions such as executive compensation, which may impact the business. value in the future. Based on our analysis, we believe CEO compensation may need to be reviewed in light of recent performance.

View our latest review for NorCom Information Technology GmbH KGaA

Comparison of the compensation of the CEO of NorCom Information Technology GmbH & Co. KGaA with the industry

Our data indicates that NorCom Information Technology GmbH & Co. KGaA has a market capitalization of 19 million euros and that the total annual compensation of the CEO was 308,000 euros for the year up to December 2020. This is a slight decrease of 3.1% compared to the previous year. It should be noted that the CEO’s compensation consists entirely of the salary, valued at € 308,000.

By comparison, other companies in the industry with market capitalizations of less than 177 million euros reported a median total CEO compensation of 288,000 euros. From this, we infer that Viggo Nordbakk is paid around the median of industry CEOs. In addition, Viggo Nordbakk directly owns 5.1 million euros in company shares, which implies that they are deeply invested in the success of the company.

Making up 2020 2019 Proportion (2020)
Salary € 308k EUR 318k 100%
Other
Total compensation € 308k EUR 318k 100%

At the industry level, almost 45% of total compensation is salary, while the remainder 55% is other compensation. At the company level, NorCom Information Technology GmbH KGaA prefers to reward its CEO with a salary, choosing not to pay Viggo Nordbakk with non-salary benefits. If salary dominates total compensation, this suggests that CEO compensation leans less towards the variable part, which is generally performance-related.

XTRA: NC5A CEO compensation December 4, 2021

A look at the growth figures of NorCom Information Technology GmbH & Co. KGaA

NorCom Information Technology GmbH & Co. KGaA has reduced its earnings per share by 56% per year over the past three years. Last year, its turnover fell by 14%.

Few shareholders would be happy to read that EPS has declined. And the impression is worse when you consider that revenues are declining year over year. It’s hard to say the company is firing on all cylinders, so shareholders might be averse to high CEO pay. We don’t have analyst forecasts, but you can better understand its growth by looking at this more detailed historical chart of earnings, income and cash flow.

Has NorCom Information Technology GmbH & Co. KGaA been a good investment?

With a total shareholder return of -63% over three years, the shareholders of NorCom Information Technology GmbH & Co. KGaA would be generally disappointed. Therefore, it could be upsetting for shareholders if the CEO is paid generously.

To conclude…

NorCom Information Technology GmbH KGaA pays CEO compensation exclusively through salary, with non-salary compensation completely ignored. Along with the poor performance of the company, shareholders suffered from a low stock price return on their investments, suggesting that there is little or no chance that they would be in favor of a price increase. CEO salary. At the next AGM, the board of directors will have the opportunity to explain the measures it intends to take to improve the performance of the company.

CEO compensation is just one of the many factors that should be taken into account when reviewing company performance. We have identified 3 warning signs for NorCom Information Technology GmbH KGaA (1 doesn’t suit us very well!) Which you should be aware of before investing here.

Gear shifting from NorCom Information Technology GmbH KGaA, if you are looking for a flawless balance sheet and superior yields, this free List of high yield, low debt companies is a great place to look.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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