In 2010 María Dolores Dancausa Treviño was appointed CEO of Bankinter, S.A. (BME:BKT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 María Dolores Dancausa Treviño's Compensation Compare With Similar Sized Companies?
Our data indicates that Bankinter, S.A. is worth €5.3b, and total annual CEO compensation was reported as €1.1m for the year to December 2019. That's a fairly small increase of 4.8% on year before. We think total compensation is more important but we note that the CEO salary is lower, at €898k. We looked at a group of companies with market capitalizations from €3.7b to €11b, and the median CEO total compensation was €863k.
So María Dolores Dancausa Treviño is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Bankinter has changed from year to year.
Is Bankinter, S.A. Growing?
On average over the last three years, Bankinter, S.A. has grown earnings per share (EPS) by 5.8% each year (using a line of best fit). Its revenue is up 1.8% over last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bankinter, S.A. Been A Good Investment?
Since shareholders would have lost about 10.0% over three years, some Bankinter, S.A. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
María Dolores Dancausa Treviño is paid around what is normal the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bankinter.
If you want to buy a stock that is better than Bankinter, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.