Johan Torgeby has been the CEO of Skandinaviska Enskilda Banken AB (publ.) (STO:SEB A) since 2017. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. 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 Johan Torgeby's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Skandinaviska Enskilda Banken AB (publ.) has a market cap of kr179b, and is paying total annual CEO compensation of kr16m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at kr11m. We took a group of companies with market capitalizations over kr79b, and calculated the median CEO total compensation to be kr20m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Johan Torgeby is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Skandinaviska Enskilda Banken AB (publ.) has changed over time.
Is Skandinaviska Enskilda Banken AB (publ.) Growing?
On average over the last three years, Skandinaviska Enskilda Banken AB (publ.) has grown earnings per share (EPS) by 24% each year (using a line of best fit). In the last year, its revenue is up 1.6%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Skandinaviska Enskilda Banken AB (publ.) Been A Good Investment?
With a total shareholder return of 18% over three years, Skandinaviska Enskilda Banken AB (publ.) shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Johan Torgeby is paid around what is normal the leaders of larger companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Skandinaviska Enskilda Banken AB (publ.).
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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