Shareholders Will Most Likely Find Bankinter, S.A.'s (BME:BKT) CEO Compensation Acceptable

Performance at Bankinter, S.A. (BME:BKT) has been reasonably good and CEO Maria Dolores Dancausa Trevino has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 23 March 2022. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Bankinter

Comparing Bankinter, S.A.'s CEO Compensation With the industry

Our data indicates that Bankinter, S.A. has a market capitalization of €4.8b, and total annual CEO compensation was reported as €1.1m for the year to December 2021. This means that the compensation hasn't changed much from last year. Notably, the salary which is €933.7k, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between €3.6b and €11b, we discovered that the median CEO total compensation of that group was €992k. This suggests that Bankinter remunerates its CEO largely in line with the industry average. Furthermore, Maria Dolores Dancausa Trevino directly owns €6.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	€934k	€934k	82%
Other	€210k	€212k	18%
Total Compensation	€1.1m	€1.1m	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. There isn't a significant difference between Bankinter and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Bankinter, S.A.'s Growth

Over the last three years, Bankinter, S.A. has shrunk its earnings per share by 8.2% per year. Its revenue is up 25% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Bankinter, S.A. Been A Good Investment?

Bankinter, S.A. has served shareholders reasonably well, with a total return of 16% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Bankinter that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.