Stock Analysis

Should You Be Pleased About The CEO Pay At Jyske Bank A/S's (CPH:JYSK)

  •  Updated
CPSE:JYSK
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Anders Dam became the CEO of Jyske Bank A/S (CPH:JYSK) in 1997. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Jyske Bank

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

According to our data, Jyske Bank A/S has a market capitalization of ø15b, and pays its CEO total annual compensation worth ø9.9m. (This figure is for the year to December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ø9.8m. When we examined a selection of companies with market caps ranging from ø6.8b to ø22b, we found the median CEO total compensation was ø8.0m.

That means Anders Dam receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Jyske Bank has changed over time.

CPSE:JYSK CEO Compensation, September 3rd 2019
CPSE:JYSK CEO Compensation, September 3rd 2019

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 4.8% per year (measured with a line of best fit). Its revenue is down -7.0% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. 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 37%, 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.

In Summary...

Anders Dam is paid around what is normal the leaders of comparable size companies.

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying Jyske Bank 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.

About CPSE:JYSK

Jyske Bank

Jyske Bank A/S provides various financial solutions in Denmark and Germany.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation2
Future Growth3
Past Performance2
Financial Health2
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Moderate growth potential and slightly overvalued.