Is Skue Sparebank (OB:SKUE) Excessively Paying Its CEO?
Hans Glesne has been the CEO of Skue Sparebank (OB:SKUE) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Skue Sparebank
How Does Hans Glesne's Compensation Compare With Similar Sized Companies?
Our data indicates that Skue Sparebank is worth kr276m, and total annual CEO compensation was reported as kr3.4m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at kr3.0m. We took a group of companies with market capitalizations below kr2.1b, and calculated the median CEO total compensation to be kr4.0m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Skue Sparebank stands. On an industry level, roughly 82% of total compensation represents salary and 18% is other remuneration. Skue Sparebank is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
So Hans Glesne receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see, below, how CEO compensation at Skue Sparebank has changed over time.
Is Skue Sparebank Growing?
Skue Sparebank has reduced its earnings per share by an average of 3.0% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 7.0% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Skue Sparebank Been A Good Investment?
I think that the total shareholder return of 69%, over three years, would leave most Skue Sparebank shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Hans Glesne is paid around the same as most CEOs of similar size companies.
We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. Moving away from CEO compensation for the moment, we've identified 3 warning signs for Skue Sparebank that you should be aware of before investing.
If you want to buy a stock that is better than Skue Sparebank, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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