Does ABN AMRO Bank N.V.'s (AMS:ABN) CEO Pay Compare Well With Peers?

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Kees van Dijkhuizen became the CEO of ABN AMRO Bank N.V. (AMS:ABN) in 2017. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for ABN AMRO Bank

How Does Kees van Dijkhuizen's Compensation Compare With Similar Sized Companies?

Our data indicates that ABN AMRO Bank N.V. is worth €18b, and total annual CEO compensation is €970k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at €723k. When we examined a group of companies with market caps over €7.1b, we found that their median CEO total compensation was €3.5m. (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).

A first glance this seems like a real positive for shareholders, since Kees van Dijkhuizen is paid less than the average total compensation paid by other large companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at ABN AMRO Bank, below.

Is ABN AMRO Bank N.V. Growing?

Over the last three years ABN AMRO Bank N.V. has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). Its revenue is down -11% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important.

Has ABN AMRO Bank N.V. Been A Good Investment?

Most shareholders would probably be pleased with ABN AMRO Bank N.V. for providing a total return of 43% 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...

ABN AMRO Bank N.V. is currently paying its CEO below what is normal for large companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Kees van Dijkhuizen deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ABN AMRO Bank.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.