Is Credit Suisse Group AG's (VTX:CSGN) CEO Paid At A Competitive Rate?

In 2015 Tidjiane Thiam was appointed CEO of Credit Suisse Group AG (VTX:CSGN). This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Credit Suisse Group

How Does Tidjiane Thiam's Compensation Compare With Similar Sized Companies?

Our data indicates that Credit Suisse Group AG is worth CHF29b, and total annual CEO compensation is CHF13m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CHF3.0m. When we examined a group of companies with market caps over CHF7.9b, we found that their median CEO total compensation was CHF4.2m. (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).

As you can see, Tidjiane Thiam is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean Credit Suisse Group AG is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Credit Suisse Group has changed over time.

Is Credit Suisse Group AG Growing?

On average over the last three years, Credit Suisse Group AG has grown earnings per share (EPS) by 117% each year (using a line of best fit). It saw its revenue drop -3.6% over the last year.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business.

Has Credit Suisse Group AG Been A Good Investment?

With a total shareholder return of 17% over three years, Credit Suisse Group AG shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We examined the amount Credit Suisse Group AG pays its CEO, and compared it to the amount paid by other large companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. So you may want to check if insiders are buying Credit Suisse Group shares with their own money (free access).

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.