Stock Analysis

How Should Investors React To Fynske Bank's (CPH:FYNBK) CEO Pay?

Source: Shutterstock

Petter Rasmussen became the CEO of Fynske Bank A/S (CPH:FYNBK) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Fynske Bank

Comparing Fynske Bank A/S' CEO Compensation With the industry

Our data indicates that Fynske Bank A/S has a market capitalization of kr.587m, and total annual CEO compensation was reported as kr.3.9m for the year to December 2019. This means that the compensation hasn't changed much from last year. Notably, the salary of kr.3.9m is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below kr.1.2b, we found that the median total CEO compensation was kr.2.9m. Accordingly, our analysis reveals that Fynske Bank A/S pays Petter Rasmussen north of the industry median.

Component20192018Proportion (2019)
Salary kr.3.9m kr.3.8m 100%
Other - - -
Total Compensationkr.3.9m kr.3.8m100%

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. Speaking on a company level, Fynske Bank prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

CPSE:FYNBK CEO Compensation December 30th 2020

A Look at Fynske Bank A/S' Growth Numbers

Over the last three years, Fynske Bank A/S has shrunk its earnings per share by 24% per year. It saw its revenue drop 14% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Fynske Bank A/S Been A Good Investment?

With a three year total loss of 9.1% for the shareholders, Fynske Bank A/S would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Fynske Bank pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Petter is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. What's equally worrying is that the company isn't growing by our analysis. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Fynske Bank that you should be aware of before investing.

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

When trading Fynske Bank or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

Valuation is complex, but we're helping make it simple.

Find out whether Fynske Bank is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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. 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.
*Interactive Brokers Rated Lowest Cost Broker by Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at)