How Much is OneSavings Bank Plc's (LON:OSB) CEO Getting Paid?
Andy Golding has been the CEO of OneSavings Bank Plc (LON:OSB) since 2012. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for OneSavings Bank
How Does Andy Golding's Compensation Compare With Similar Sized Companies?
Our data indicates that OneSavings Bank Plc is worth UK£1.8b, and total annual CEO compensation was reported as UK£1.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at UK£501k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from UK£768m to UK£2.5b, we found the median CEO total compensation was UK£1.4m.
So Andy Golding 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.
The graphic below shows how CEO compensation at OneSavings Bank has changed from year to year.
Is OneSavings Bank Plc Growing?
Over the last three years OneSavings Bank Plc has grown its earnings per share (EPS) by an average of 5.6% per year (using a line of best fit). Its revenue is up 12% over last year.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has OneSavings Bank Plc Been A Good Investment?
I think that the total shareholder return of 45%, over three years, would leave most OneSavings Bank Plc shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Andy Golding is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at OneSavings 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.
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