In 1997 Anders Dam was appointed CEO of Jyske Bank A/S (CPH:JYSK). 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 - 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.
How Does Anders Dam's Compensation Compare With Similar Sized Companies?
Our data indicates that Jyske Bank A/S is worth ø17b, and total annual CEO compensation was reported as ø9.9m for the year to December 2018. Notably, the salary of ø9.8m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from ø13b to ø43b, and the median CEO total compensation was ø11m.
So Anders Dam is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. Shareholders might be interested in this free visualization of analyst forecasts.
You can see a visual representation of the CEO compensation at Jyske Bank, below.
Is Jyske Bank A/S Growing?
Over the last three years Jyske Bank A/S has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). Its revenue is down 16% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO.
Has Jyske Bank A/S Been A Good Investment?
With a three year total loss of 28%, Jyske Bank A/S would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Anders Dam is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Jyske Bank shares (free trial).
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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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. Thank you for reading.
Valuation is complex, but we're helping make it simple.
Find out whether Jyske 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