We Think The Compensation For CaixaBank, S.A.'s (BME:CABK) CEO Looks About Right

Key Insights

• CaixaBank will host its Annual General Meeting on 10th of April
• Total pay for CEO Gonzalo Gortazar Rotaeche includes €2.26m salary
• The overall pay is comparable to the industry average
• CaixaBank's total shareholder return over the past three years was 165% while its EPS grew by 5.7% over the past three years

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Under the guidance of CEO Gonzalo Gortazar Rotaeche, CaixaBank, S.A. (BME:CABK) 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 10th of April. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for CaixaBank

Comparing CaixaBank, S.A.'s CEO Compensation With The Industry

Our data indicates that CaixaBank, S.A. has a market capitalization of €50b, and total annual CEO compensation was reported as €2.9m for the year to December 2024. That's a modest increase of 5.9% on the prior year. In particular, the salary of €2.26m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Spanish Banks industry with market capitalizations over €7.3b, the reported median total CEO compensation was €3.9m. From this we gather that Gonzalo Gortazar Rotaeche is paid around the median for CEOs in the industry. What's more, Gonzalo Gortazar Rotaeche holds €5.8m worth of shares in the company in their own name.

Speaking on an industry level, nearly 34% of total compensation represents salary, while the remainder of 66% is other remuneration. CaixaBank pays out 79% of remuneration in the form of a salary, significantly higher than the industry average. 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.

A Look at CaixaBank, S.A.'s Growth Numbers

Over the past three years, CaixaBank, S.A. has seen its earnings per share (EPS) grow by 5.7% per year. It achieved revenue growth of 15% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future .

Has CaixaBank, S.A. Been A Good Investment?

Boasting a total shareholder return of 165% over three years, CaixaBank, S.A. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is potentially serious) in CaixaBank we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.