In 2014 Gonzalo Gortázar Rotaeche was appointed CEO of CaixaBank, S.A. (BME:CABK). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. 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 Gonzalo Gortázar Rotaeche's Compensation Compare With Similar Sized Companies?
Our data indicates that CaixaBank, S.A. is worth €16b, and total annual CEO compensation was reported as €3.5m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €1.3m. 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 group of companies with market caps over €7.2b, we found that their median CEO total compensation was €3.5m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Gonzalo Gortázar Rotaeche is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at CaixaBank has changed over time.
Is CaixaBank, S.A. Growing?
Over the last three years CaixaBank, S.A. has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). In the last year, its revenue is up 4.1%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has CaixaBank, S.A. Been A Good Investment?
Since shareholders would have lost about 19% over three years, some CaixaBank, S.A. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Gonzalo Gortázar Rotaeche is close enough to the median pay for a CEO of a large company .
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CaixaBank (free visualization of insider trades).
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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