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In 2015 Rune Fjeldstad was appointed CEO of SpareBank 1 BV (OB:SBVG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Rune Fjeldstad’s Compensation Compare With Similar Sized Companies?
Our data indicates that SpareBank 1 BV is worth øre2.4b, and total annual CEO compensation is øre6.4m. (This number is for the twelve months until December 2018). That’s below the compensation, last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at øre2.8m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of øre858m to øre3.4b. The median total CEO compensation was øre4.0m.
Thus we can conclude that Rune Fjeldstad receives more in total compensation than the median of a group of companies in the same market, and of similar size to SpareBank 1 BV. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at SpareBank 1 BV, below.
Is SpareBank 1 BV Growing?
On average over the last three years, SpareBank 1 BV has grown earnings per share (EPS) by 28% each year (using a line of best fit). In the last year, its revenue is up 3.4%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has SpareBank 1 BV Been A Good Investment?
Most shareholders would probably be pleased with SpareBank 1 BV for providing a total return of 165% over three years. 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 SpareBank 1 BV pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling SpareBank 1 BV shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.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.