We Think The Compensation For Coop Pank AS' (TAL:CPA1T) CEO Looks About Right

Key Insights

• Coop Pank will host its Annual General Meeting on 17th of April
• Salary of €156.0k is part of CEO Margus Rink's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Coop Pank's EPS grew by 68% and over the past three years, the total shareholder return was 12%

Under the guidance of CEO Margus Rink, Coop Pank AS (TAL:CPA1T) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of April. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Coop Pank

How Does Total Compensation For Margus Rink Compare With Other Companies In The Industry?

According to our data, Coop Pank AS has a market capitalization of €246m, and paid its CEO total annual compensation worth €300k over the year to December 2023. We note that's an increase of 13% above last year. In particular, the salary of €156.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Europe Banks industry with market capitalizations ranging between €93m and €372m had a median total CEO compensation of €419k. From this we gather that Margus Rink is paid around the median for CEOs in the industry. Moreover, Margus Rink also holds €1.7m worth of Coop Pank stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	€156k	€140k	52%
Other	€144k	€126k	48%
Total Compensation	€300k	€266k	100%

Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. It's interesting to note that Coop Pank allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Coop Pank AS' Growth

Over the past three years, Coop Pank AS has seen its earnings per share (EPS) grow by 68% per year. Its revenue is up 62% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Coop Pank AS Been A Good Investment?

Coop Pank AS has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Coop Pank that investors should look into moving forward.

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.