Danske Bank A/S' (CPH:DANSKE) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Danske Bank will host its Annual General Meeting on 20th of March
• Total pay for CEO Carsten Egeriis includes kr.16.0m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Danske Bank's EPS grew by 25% and over the past three years, the total shareholder return was 142%

The performance at Danske Bank A/S (CPH:DANSKE) has been quite strong recently and CEO Carsten Egeriis has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of March. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Danske Bank

Comparing Danske Bank A/S' CEO Compensation With The Industry

Our data indicates that Danske Bank A/S has a market capitalization of kr.196b, and total annual CEO compensation was reported as kr.22m for the year to December 2024. Notably, that's an increase of 9.4% over the year before. We note that the salary portion, which stands at kr.16.0m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Danish Banks industry with market capitalizations over kr.55b, the reported median total CEO compensation was kr.19m. This suggests that Danske Bank remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	kr.16m	kr.15m	73%
Other	kr.5.9m	kr.5.5m	27%
Total Compensation	kr.22m	kr.20m	100%

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. It's interesting to note that Danske Bank allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Danske Bank A/S' Growth Numbers

Danske Bank A/S has seen its earnings per share (EPS) increase by 25% a year over the past three years. Its revenue is up 9.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Danske Bank A/S Been A Good Investment?

Most shareholders would probably be pleased with Danske Bank A/S for providing a total return of 142% 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Danske Bank we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.