Tor Lie has been the CEO of Jaeren Sparebank (OB:JAEREN) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Tor Lie’s Compensation Compare With Similar Sized Companies?
Our data indicates that Jaeren Sparebank is worth kr649m, and total annual CEO compensation is kr4.1m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at kr1.9m. We looked at a group of companies with market capitalizations under kr1.8b, and the median CEO total compensation was kr3.0m.
As you can see, Tor Lie is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Jaeren Sparebank is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Jaerenrebank has changed over time.
Is Jaeren Sparebank Growing?
On average over the last three years, Jaeren Sparebank has grown earnings per share (EPS) by 4.2% each year (using a line of best fit). Its revenue is up 3.0% over last year.
I’d prefer higher revenue growth, but the modest improvement in EPS is good. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
Has Jaeren Sparebank Been A Good Investment?
Boasting a total shareholder return of 66% over three years, Jaeren Sparebank 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.
We examined the amount Jaeren Sparebank pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there’s no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Jaerenrebank shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.