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Geir Bergskaug became the CEO of Sparebanken Sør (OB:SOR) in 2014. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Geir Bergskaug’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sparebanken Sør has a market cap of øre1.5b, and is paying total annual CEO compensation of øre5.1m. (This figure is for the year to December 2018). That’s a fairly small increase of 5.1% on year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at øre2.8m. We looked at a group of companies with market capitalizations from øre858m to øre3.4b, and the median CEO total 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, below, how CEO compensation at Sparebanken Sør has changed over time.
Is Sparebanken Sør Growing?
On average over the last three years, Sparebanken Sør has grown earnings per share (EPS) by 72% each year (using a line of best fit). In the last year, its revenue changed by just -0.9%.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sparebanken Sør Been A Good Investment?
Most shareholders would probably be pleased with Sparebanken Sør for providing a total return of 78% over three years. 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 what is normal the leaders of comparable 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. So you may want to check if insiders are buying Sparebanken Sør shares with their own money (free access).
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.