How Much Is Banque Saudi Fransi's (TADAWUL:1050) CEO Getting Paid?

Rayan Bin Mohammed Fayez became the CEO of Banque Saudi Fransi (TADAWUL:1050) in 2018, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Banque Saudi Fransi

Comparing Banque Saudi Fransi's CEO Compensation With the industry

Our data indicates that Banque Saudi Fransi has a market capitalization of ر.س37b, and total annual CEO compensation was reported as ر.س483k for the year to December 2019. Notably, that's a decrease of 10% over the year before. Notably, the salary which is ر.س420.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations over ر.س30b , the reported median total CEO compensation was ر.س2.2m. In other words, Banque Saudi Fransi pays its CEO lower than the industry median.

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. It's interesting to note that Banque Saudi Fransi pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Banque Saudi Fransi's Growth Numbers

Over the last three years, Banque Saudi Fransi has shrunk its earnings per share by 17% per year. Its revenue is down 14% over the previous year.

Overall this is not a very positive result for shareholders. 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Banque Saudi Fransi Been A Good Investment?

Banque Saudi Fransi has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As we touched on above, Banque Saudi Fransi is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been unexciting, and EPS growth has fared even worse. So, although we can't say CEO compensation is very high, shareholders might want to see an improvement in overall performance before agreeing that Rayan deserves a bump.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Banque Saudi Fransi that investors should think about before committing capital to this stock.

Important note: Banque Saudi Fransi is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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