Hans Glesne has been the CEO of Skue Sparebank (OB:SKUE) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Hans Glesne Compare With Other Companies In The Industry?
Our data indicates that Skue Sparebank has a market capitalization of kr315m, and total annual CEO compensation was reported as kr3.7m for the year to December 2019. That's a notable increase of 8.8% on last year. Notably, the salary which is kr3.28m, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under kr1.8b, the reported median total CEO compensation was kr2.7m. Hence, we can conclude that Hans Glesne is remunerated higher than the industry median. Moreover, Hans Glesne also holds kr1.5m worth of Skue Sparebank stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. There isn't a significant difference between Skue Sparebank and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Skue Sparebank's Growth
Skue Sparebank has reduced its earnings per share by 3.9% a year over the last three years. It achieved revenue growth of 2.5% over the last year.
Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Skue Sparebank Been A Good Investment?
Boasting a total shareholder return of 72% over three years, Skue 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.
As we noted earlier, Skue Sparebank pays its CEO higher than the norm for similar-sized companies belonging to the same industry. We're not seeing great strides in EPS, but the company has clearly pleased some investors, given the returns over the last three years. So while we would not say that Hans is generously paid, stockholders would want to see some EPS growth before agreeing that a raise is a good idea.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Skue Sparebank that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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. 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.
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