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How Should Investors React To Jutlander Bank A/S's (CPH:JUTBK) CEO Pay?

Simply Wall St

Per Sønderup has been the CEO of Jutlander Bank A/S (CPH:JUTBK) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for Jutlander Bank

How Does Per Sønderup's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Jutlander Bank A/S has a market cap of ø1.7b, and reported total annual CEO compensation of ø4.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at ø3.1m. When we examined a selection of companies with market caps ranging from ø678m to ø2.7b, we found the median CEO total compensation was ø4.0m.

So Per Sønderup 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.

You can see a visual representation of the CEO compensation at Jutlander Bank, below.

CPSE:JUTBK CEO Compensation, January 25th 2020

Is Jutlander Bank A/S Growing?

On average over the last three years, Jutlander Bank A/S has grown earnings per share (EPS) by 11% each year (using a line of best fit). Its revenue is up 19% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jutlander Bank A/S Been A Good Investment?

With a three year total loss of 0.6%, Jutlander Bank A/S would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Per Sønderup is paid around the same as most CEOs of similar size companies.

We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Jutlander Bank.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.