Is Jyske Bank A/S’s (CPH:JYSK) CEO Paid Enough Relative To Peers?

Anders Dam became the CEO of Jyske Bank A/S (CPH:JYSK) in 1997. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Jyske Bank

How Does Anders Dam’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Jyske Bank A/S has a market cap of ø24.7b, and is paying total annual CEO compensation of ø10m. That’s a notable increase of 43% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ø12.9b to ø41.4b. The median total CEO compensation was ø13m.

That means Anders Dam receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Jyske Bank has changed from year to year.

CPSE:JYSK CEO Compensation October 12th 18
CPSE:JYSK CEO Compensation October 12th 18

Is Jyske Bank A/S Growing?

On average over the last three years, Jyske Bank A/S has grown earnings per share (EPS) by 21% each year. It saw its revenue drop -6.8% over the last year.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Jyske Bank A/S Been A Good Investment?

Given the total loss of 13% over three years, many shareholders in Jyske Bank A/S are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Anders Dam is paid around the same as most CEOs of similar size companies.

We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Jyske Bank A/S (free visualization of insider trades).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.