Anders Dam became the CEO of Jyske Bank A/S (CPH:JYSK) in 1997, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Jyske Bank.
How Does Total Compensation For Anders Dam Compare With Other Companies In The Industry?
According to our data, Jyske Bank A/S has a market capitalization of kr.15b, and paid its CEO total annual compensation worth kr.10m over the year to December 2019. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is kr.9.90m, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations ranging from kr.6.3b to kr.20b, the reported median CEO total compensation was kr.7.1m. This suggests that Anders Dam is paid more than the median for the industry.
Talking in terms of the industry, salary represented approximately 88% of total compensation out of all the companies we analyzed, while other remuneration made up 12% of the pie. Jyske Bank pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Jyske Bank A/S' Growth Numbers
Over the last three years, Jyske Bank A/S has shrunk its earnings per share by 34% per year. It saw its revenue drop 23% over the last year.
Few shareholders would be pleased to read that earnings 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Jyske Bank A/S Been A Good Investment?
Given the total shareholder loss of 45% over three years, many shareholders in Jyske Bank A/S are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
Anders receives almost all of their compensation through a salary. As we noted earlier, Jyske Bank pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. Add to that declining earnings growth, and you have the perfect recipe for shareholder irritation. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Jyske Bank that investors should think about before committing capital to this stock.
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. 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.
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