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In 2015 Rune Fjeldstad was appointed CEO of SpareBank 1 BV (OB:SBVG). 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.
How Does Rune Fjeldstad’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that SpareBank 1 BV has a market cap of øre2.4b, and is paying total annual CEO compensation of øre6.4m. (This figure is for the year to December 2018). That’s actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at øre2.8m. When we examined a selection of companies with market caps ranging from øre858m to øre3.4b, we found the median CEO total compensation was øre4.0m.
It would therefore appear that SpareBank 1 BV pays Rune Fjeldstad more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at SpareBank 1 BV has changed over time.
Is SpareBank 1 BV Growing?
SpareBank 1 BV has increased its earnings per share (EPS) by an average of 28% a year, over the last three years (using a line of best fit). Its revenue is up 3.4% over last year.
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. You might want to check this free visual report on analyst forecasts for future earnings.
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. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by SpareBank 1 BV, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if SpareBank 1 BV insiders are buying or selling shares.
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 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.