In 2013 Arild Hansen was appointed CEO of SpareBank 1 Østfold Akershus (OB:SOAG). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Arild Hansen’s Compensation Compare With Similar Sized Companies?
According to our data, SpareBank 1 Østfold Akershus has a market capitalization of øre2.7b, and pays its CEO total annual compensation worth øre3.5m. (This number is for the twelve months until December 2018). That’s just a smallish increase of 7.5% on last year. We think total compensation is more important but we note that the CEO salary is lower, at øre3.1m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of øre1.7b to øre6.8b. The median total CEO compensation was øre4.6m.
So Arild Hansen receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.
The graphic below shows how CEO compensation at SpareBank 1 Østfold Akershus has changed from year to year.
Is SpareBank 1 Østfold Akershus Growing?
On average over the last three years, SpareBank 1 Østfold Akershus has grown earnings per share (EPS) by 13% each year (using a line of best fit). It achieved revenue growth of 9.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has SpareBank 1 Østfold Akershus Been A Good Investment?
Boasting a total shareholder return of 105% over three years, SpareBank 1 Østfold Akershus 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 Arild Hansen is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if SpareBank 1 Østfold Akershus insiders are buying or selling shares.
Important note: SpareBank 1 Østfold Akershus may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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