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In 2009 Hans Glesne was appointed CEO of Skue Sparebank (OB:SKUE). 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 Hans Glesne’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Skue Sparebank has a market cap of øre274m, and is paying total annual CEO compensation of øre3.2m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at øre2.8m. We examined a group of similar sized companies, with market capitalizations of below øre1.7b. The median CEO total compensation in that group is øre2.5m.
So Hans Glesne is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Skuerebank has changed from year to year.
Is Skue Sparebank Growing?
On average over the last three years, Skue Sparebank has shrunk earnings per share by 1.4% each year (measured with a line of best fit). It saw its revenue drop -1.3% over the last year.
In the last three years the company has failed to grow earnings per s. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Skue Sparebank Been A Good Investment?
Boasting a total shareholder return of 94% 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.
Remuneration for Hans Glesne is close enough to the median pay for a CEO of a similar sized company .
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we think most shareholders wouldn’t be too worried about CEO compensation, which is close to the median for similar sized companies. Shareholders may want to check for free if Skuerebank insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.