This Is The Reason Why We Think Cadeler A/S' (OB:CADLR) CEO Might Be Underpaid

Key Insights

• Cadeler to hold its Annual General Meeting on 22nd of April
• Salary of €592.3k is part of CEO Mikkel Gleerup's total remuneration
• Total compensation is 35% below industry average
• Cadeler's EPS grew by 48% over the past three years while total shareholder return over the past three years was 46%

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Shareholders will be pleased by the impressive results for Cadeler A/S (OB:CADLR) recently and CEO Mikkel Gleerup has played a key role. This would be kept in mind at the upcoming AGM on 22nd of April which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Cadeler

Comparing Cadeler A/S' CEO Compensation With The Industry

Our data indicates that Cadeler A/S has a market capitalization of kr19b, and total annual CEO compensation was reported as €1.4m for the year to December 2024. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €592k.

On comparing similar companies from the Norwegian Construction industry with market caps ranging from kr11b to kr34b, we found that the median CEO total compensation was €2.2m. In other words, Cadeler pays its CEO lower than the industry median. Moreover, Mikkel Gleerup also holds kr3.9m worth of Cadeler stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	€592k	€531k	41%
Other	€836k	€919k	59%
Total Compensation	€1.4m	€1.5m	100%

On an industry level, roughly 56% of total compensation represents salary and 44% is other remuneration. Cadeler pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Cadeler A/S' Growth

Over the past three years, Cadeler A/S has seen its earnings per share (EPS) grow by 48% per year. It achieved revenue growth of 129% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cadeler A/S Been A Good Investment?

Most shareholders would probably be pleased with Cadeler A/S for providing a total return of 46% 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Cadeler that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.