Shareholders Will Probably Hold Off On Increasing Banco de Sabadell, S.A.'s (BME:SAB) CEO Compensation For The Time Being

Key Insights

• Banco de Sabadell to hold its Annual General Meeting on 10th of April
• CEO Cesar Gonzalez-Bueno Wittgenstein's total compensation includes salary of €2.00m
• The overall pay is 143% above the industry average
• Banco de Sabadell's EPS grew by 79% over the past three years while total shareholder return over the past three years was 254%

Performance at Banco de Sabadell, S.A. (BME:SAB) has been reasonably good and CEO Cesar Gonzalez-Bueno Wittgenstein 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 10th of April. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Banco de Sabadell

How Does Total Compensation For Cesar Gonzalez-Bueno Wittgenstein Compare With Other Companies In The Industry?

According to our data, Banco de Sabadell, S.A. has a market capitalization of €8.2b, and paid its CEO total annual compensation worth €2.8m over the year to December 2023. That's a notable increase of 21% on last year. We note that the salary portion, which stands at €2.00m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Spanish Banks industry with market capitalizations ranging between €3.7b and €11b had a median total CEO compensation of €1.1m. This suggests that Cesar Gonzalez-Bueno Wittgenstein is paid more than the median for the industry. Moreover, Cesar Gonzalez-Bueno Wittgenstein also holds €1.6m worth of Banco de Sabadell stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	€2.0m	€1.6m	72%
Other	€775k	€717k	28%
Total Compensation	€2.8m	€2.3m	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. Banco de Sabadell pays out 72% 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 Banco de Sabadell, S.A.'s Growth Numbers

Over the past three years, Banco de Sabadell, S.A. has seen its earnings per share (EPS) grow by 79% per year. It achieved revenue growth of 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Banco de Sabadell, S.A. Been A Good Investment?

Boasting a total shareholder return of 254% over three years, Banco de Sabadell, 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Banco de Sabadell you should be aware of, and 1 of them is concerning.

Important note: Banco de Sabadell is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.