Doing business at low prices can be profitable. For Europris CEO Espen Eldal, 2023 has been a very good year.
The total remuneration amounted to NOK 8.5 million including salary, pension and a very strong bonus.
– Oh, it was a lot, I didn't think so, says Alisha Sarfaraz (19), whom Netavisen meets outside Europress in central Oslo.
– This is surprising. “If it was Rema 1000 or one of the really big chains, I could understand that,” says Sylvain Kabar (19).
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Kiwi Renard won
The bonus awarded to the Europris director of NOK 4.2 million beats the bonus given to the top manager at the owner of Kiwi.
Runar Holevik heads Norway's largest grocery group and has received his biggest ever bonus. It was 3.7 million Norwegian kroner, half a million under What the Europris boss got.
Andrei Netavysyn uses words like “scary” when talking about the salary and bonus of the Europris president. Many believe that the prices in the store may be a little lower.
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But some look at the matter completely differently.
-I think it's worth the money. He is doing a good job, says Mohamed Obada Ayai (31 years old).
He would not have reacted even if the salary and bonus were higher.
-I am happy that Europris exists. He says not everyone can afford it.
At the top of the low price
Among low-cost Norwegian managers, the boss at Europris prevails. But there's also decent pay for running other large discount chains.
Norway's coach Claas Olsson, Lyn Eirin Owen, was able to collect $2.34 million in salary and other allowances.
The average manager in Norway, Thomas Harsvik, had a total of NOK 2.16 million.
Rosta's director in Norway, Erlend Kramer, had 1.92 million.
At the time of writing, the numbers were not clear for Biltima, Gula and Nile.
Nettavisen asked Europris CEO Espen Eldal several questions. Among other things:
– How does this fit with the high salary and bonus that a boss gets in a low-priced chain like Europris?
– I understand that the media is interested in writing about this, Europris director Espen Eldal tells Nettavisen.
Europress Trip
Eldal took over as CEO of Europris in 2020 after previously serving as CFO at the same company.
Under his reign, the company continued to grow by acquiring companies such as Strikkemekka and Lekekassen, among others. Recently it became clear that they are buying the low-priced Swedish chain ÖoB. After that, Europris expects total turnover to reach NOK 14-15 billion.
Europris currently has 260 large and small warehouses, and there has been significant growth since the opening of the first store in 1992.
In 2015, Europris went public. Today the largest owner is Folketrygdfondet, which owns 12.4 percent of the shares.
But CEO Espen Eldal also owns a number of shares. It is true that he received only 0.37 percent through his company Knipen AS. Over the past three months, earnings were NOK 3.25 per share. Which means a dividend for Eldal of just over 2 million kroner.
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Europris' turnover in 2023 reached 9.4 billion. In comparison, 2023 turnover in Norway for other low-cost players was as follows:
- Clas Olsson: 3.8 billion
- natural; 3.3 billion
- Rasta: 2.1 billion
Price increase
Europris has goods in several categories. Bath towels, paper, detergents, shampoo, soap, snacks, sweets, kitchen equipment, garden furniture and interior items.
In recent years, there has been the largest increase in food prices in 40 years.
Prices of other commodities also rose sharply. It also has a Europris director salary and bonus.
His total remuneration including salary, bonuses, pension and other remuneration has increased by more than three million kroner from 2021 to 2023. This is an increase of 59 percent.
– It should be motivating
– The Europris guidelines for executive remuneration were approved at the general meeting, says Eldal.
Eldahl summarizes the guidelines as follows:
– The guidelines are designed to ensure the Group's ability to recruit, develop and retain senior staff with relevant experience. Rewards should be motivating and consistent with market practices, Eldal says.
Eldal believes it would be a mistake to compare his salary with the Norwegian bosses of Klaas Olsson, Rosta and Normal, all of whom are headquartered outside Norway.
The former two have CEOs in Sweden, while Normal's CEO is in Denmark. Their salaries range from around six Norwegian kroner to just over 10 million Norwegian kroner.
– Regarding the level of remuneration for executives at Europris, I also refer to the executive remuneration report which describes that this should be market-based, and in my opinion the short comparison above shows that it meets that, says Eldal.
Eldahl otherwise points out that the reward is earned over several years.
“Payment is made over several years, and is conditional on me still working at the time of payment,” says Eldal.
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