Is SpareBank 1 Ringerike Hadeland (OB:RING) Overpaying Its CEO?

In 2008 Steinar Haugli was appointed CEO of SpareBank 1 Ringerike Hadeland (OB:RING). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

See our latest analysis for SpareBank 1 Ringerike Hadeland

How Does Steinar Haugli’s Compensation Compare With Similar Sized Companies?

According to our data, SpareBank 1 Ringerike Hadeland has a market capitalization of øre3.1b, and pays its CEO total annual compensation worth øre3.8m. (This number is for the twelve months until December 2018). That’s a fairly small increase of 4.4% on year before. While we always look at total compensation first, we note that the salary component is less, at øre2.0m. We looked at a group of companies with market capitalizations from øre1.7b to øre6.8b, and the median CEO total compensation was øre4.4m.

That means Steinar Haugli receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at SpareBank 1 Ringerike Hadeland, below.

OB:RING CEO Compensation, April 12th 2019
OB:RING CEO Compensation, April 12th 2019

Is SpareBank 1 Ringerike Hadeland Growing?

Over the last three years SpareBank 1 Ringerike Hadeland has grown its earnings per share (EPS) by an average of 7.8% per year (using a line of best fit). It achieved revenue growth of 5.4% over the last year.

I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Shareholders might be interested in this free visualization of analyst forecasts.

Has SpareBank 1 Ringerike Hadeland Been A Good Investment?

I think that the total shareholder return of 40%, over three years, would leave most SpareBank 1 Ringerike Hadeland shareholders smiling. 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.

In Summary…

Steinar Haugli is paid around the same as most CEOs of similar size companies.

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SpareBank 1 Ringerike Hadeland (free visualization of insider trades).

If you want to buy a stock that is better than SpareBank 1 Ringerike Hadeland, this free list of high return, low debt companies is a great place to look.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.