Coop Pank AS' (TAL:CPA1T) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Coop Pank to hold its Annual General Meeting on 16th of April
• Total pay for CEO Margus Rink includes €184.0k salary
• The total compensation is 33% less than the average for the industry
• Coop Pank's three-year loss to shareholders was 19% while its EPS grew by 28% over the past three years

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Performance at Coop Pank AS (TAL:CPA1T) has been rather uninspiring recently and shareholders may be wondering how CEO Margus Rink plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 16th of April. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Coop Pank

Comparing Coop Pank AS' CEO Compensation With The Industry

According to our data, Coop Pank AS has a market capitalization of €212m, and paid its CEO total annual compensation worth €308k over the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is €184.0k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Europe Banks industry with market capitalizations ranging between €91m and €365m had a median total CEO compensation of €457k. In other words, Coop Pank pays its CEO lower than the industry median. What's more, Margus Rink holds €1.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	€184k	€156k	60%
Other	€124k	€144k	40%
Total Compensation	€308k	€300k	100%

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Coop Pank is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Coop Pank AS' Growth

Coop Pank AS's earnings per share (EPS) grew 28% per year over the last three years. Its revenue is down 3.4% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Coop Pank AS Been A Good Investment?

Since shareholders would have lost about 19% over three years, some Coop Pank AS investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

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 Coop Pank that you should be aware of before investing.

Switching gears from Coop Pank, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.