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Jaime Guardiola Romojaro became the CEO of Banco de Sabadell, S.A. (BME:SAB) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jaime Guardiola Romojaro's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Banco de Sabadell, S.A. has a market cap of €5.6b, and is paying total annual CEO compensation of €100k. (This number is for the twelve months until December 2018). That's a notable increase of 8.7% on last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth €100k. We looked at a group of companies with market capitalizations from €3.6b to €11b, and the median CEO total compensation was €65k.
It would therefore appear that Banco de Sabadell, S.A. pays Jaime Guardiola Romojaro more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Banco de Sabadell has changed over time.
Is Banco de Sabadell, S.A. Growing?
On average over the last three years, Banco de Sabadell, S.A. has shrunk earnings per share by 29% each year (measured with a line of best fit). Its revenue is down -14% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Banco de Sabadell, S.A. Been A Good Investment?
Since shareholders would have lost about 27% over three years, some Banco de Sabadell, S.A. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Banco de Sabadell, S.A. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Notably, the CEO remuneration is actually up on last year. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if Banco de Sabadell insiders are buying or selling shares.
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.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.