Should You Worry About Totalbanken A/S's (CPH:TOTA) CEO Salary Level?
Ivan Sløk is the CEO of Totalbanken A/S (CPH:TOTA). 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 - 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.
View our latest analysis for Totalbanken
How Does Ivan Sløk's Compensation Compare With Similar Sized Companies?
According to our data, Totalbanken A/S has a market capitalization of ø222m, and paid its CEO total annual compensation worth ø2.9m over the year to December 2019. That's a modest increase of 7.3% on the prior year year. We think total compensation is more important but we note that the CEO salary is lower, at ø2.3m. We examined a group of similar sized companies, with market capitalizations of below ø1.4b. The median CEO total compensation in that group is ø3.2m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Totalbanken is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
So Ivan Sløk 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. You can see, below, how CEO compensation at Totalbanken has changed over time.
Is Totalbanken A/S Growing?
Over the last three years Totalbanken A/S has seen earnings per share (EPS) move in a positive direction by an average of 24% per year (using a line of best fit). It achieved revenue growth of 31% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Totalbanken A/S Been A Good Investment?
With a total shareholder return of 12% over three years, Totalbanken A/S shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Ivan Sløk is paid around what is normal for the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. Looking into other areas, we've picked out 2 warning signs for Totalbanken that investors should think about before committing capital to this stock.
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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