Is Raiffeisen Bank International AG's (VIE:RBI) CEO Paid At A Competitive Rate?
In 2017 Johann Strobl was appointed CEO of Raiffeisen Bank International AG (VIE:RBI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Raiffeisen Bank International
How Does Johann Strobl's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Raiffeisen Bank International AG has a market cap of €7.2b, and reported total annual CEO compensation of €2.3m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €900k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.6b to €11b. The median total CEO compensation was €2.2m.
So Johann Strobl receives a similar amount to the median CEO pay, amongst 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 Raiffeisen Bank International has changed from year to year.
Is Raiffeisen Bank International AG Growing?
On average over the last three years, Raiffeisen Bank International AG has grown earnings per share (EPS) by 21% each year (using a line of best fit). It saw its revenue drop 8.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has Raiffeisen Bank International AG Been A Good Investment?
With a total shareholder return of 21% over three years, Raiffeisen Bank International AG shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Johann Strobl is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying Raiffeisen Bank International shares with their own money (free access).
Important note: Raiffeisen Bank International may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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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