In 2012 John Fisker was appointed CEO of Ringkjøbing Landbobank A/S (CPH:RILBA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Fisker's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Ringkjøbing Landbobank A/S has a market cap of ø15b, and reported total annual CEO compensation of ø5.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ø4.3m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ø6.7b to ø22b. The median total CEO compensation was ø8.0m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Ringkjøbing Landbobank has changed from year to year.
Is Ringkjøbing Landbobank A/S Growing?
Ringkjøbing Landbobank A/S saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. Its revenue is up 50% over last year.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. I wouldn't say this is necessarily top notch growth, but it is certainly promising. You might want to check this free visual report on analyst forecasts for future earnings.
Has Ringkjøbing Landbobank A/S Been A Good Investment?
Most shareholders would probably be pleased with Ringkjøbing Landbobank A/S for providing a total return of 79% over three years. 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.
It appears that Ringkjøbing Landbobank A/S remunerates its CEO below most similar sized companies.
It's well worth noting that while John Fisker is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. So you may want to check if insiders are buying Ringkjøbing Landbobank shares with their own money (free access).
If you want to buy a stock that is better than Ringkjøbing Landbobank, this free list of high return, low debt companies is a great place to look.
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