Yahoo Finance Is Ringkjøbing Landbobank A/S's (CPH:RILBA) CEO Being Overpaid?
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John Fisker has been the CEO of Ringkjøbing Landbobank A/S (CPH:RILBA) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
See our latest analysis for Ringkjøbing Landbobank
How Does John Fisker's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Ringkjøbing Landbobank A/S has a market cap of ø13b, and is paying total annual CEO compensation of ø5.6m. (This number is for the twelve months until December 2018). That's a fairly small increase of 4.3% on year before. We think total compensation is more important but we note that the CEO salary is lower, at ø4.3m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ø6.6b to ø21b. The median total CEO compensation was ø8.0m.
A first glance this seems like a real positive for shareholders, since John Fisker is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Ringkjøbing Landbobank has changed from year to year.
Is Ringkjøbing Landbobank A/S Growing?
Ringkjøbing Landbobank A/S saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. Its revenue is up 49% over last year.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. It could be important to check this free visual depiction of what analysts expect for the future.
Has Ringkjøbing Landbobank A/S Been A Good Investment?
Boasting a total shareholder return of 68% over three years, Ringkjøbing Landbobank A/S has done well by shareholders. 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...
It appears that Ringkjøbing Landbobank A/S remunerates its CEO below most similar sized companies.
John Fisker receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ringkjøbing Landbobank (free visualization of insider trades).
If you want to buy a stock that is better than Ringkjøbing Landbobank, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.
