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Geir Bergskaug became the CEO of Sparebanken Sør (OB:SOR) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Geir Bergskaug’s Compensation Compare With Similar Sized Companies?
Our data indicates that Sparebanken Sør is worth øre1.5b, and total annual CEO compensation is øre5.1m. (This figure is for the year to December 2018). That’s a modest increase of 5.1% on the prior year year. While we always look at total compensation first, we note that the salary component is less, 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.
So Geir Bergskaug receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Sparebanken Sør, below.
Is Sparebanken Sør Growing?
Over the last three years Sparebanken Sør has grown its earnings per share (EPS) by an average of 72% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sparebanken Sør Been A Good Investment?
I think that the total shareholder return of 78%, over three years, would leave most Sparebanken Sør shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Geir Bergskaug is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Sparebanken Sør 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.
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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.