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Karl Hersvik has been the CEO of Aker BP ASA (OB:AKERBP) since 2014. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Aker BP
How Does Karl Hersvik's Compensation Compare With Similar Sized Companies?
Our data indicates that Aker BP ASA is worth øre85b, and total annual CEO compensation is US$2.0m. (This is based on the year to December 2018). That's just a smallish increase of 3.0% on last year. While we always look at total compensation first, we note that the salary component is less, at US$783k. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$1.7m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
That means Karl Hersvik receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Aker BP has changed from year to year.
Is Aker BP ASA Growing?
Aker BP ASA has increased its earnings per share (EPS) by an average of 101% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 26%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Aker BP ASA Been A Good Investment?
Most shareholders would probably be pleased with Aker BP ASA for providing a total return of 184% over three years. 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...
Remuneration for Karl Hersvik is close enough to the median pay for a CEO of a large company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Aker BP insiders are buying or selling shares.