Here's What We Think About CaixaBank, S.A.'s (BME:CABK) CEO Pay

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Gonzalo Rotaeche became the CEO of CaixaBank, S.A. (BME:CABK) in 2014. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for CaixaBank

How Does Gonzalo Rotaeche's Compensation Compare With Similar Sized Companies?

Our data indicates that CaixaBank, S.A. is worth €13b, and total annual CEO compensation is €3.5m. (This is based on 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 took a group of companies with market capitalizations over €7.1b, and calculated the median CEO total compensation to be €2.7m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.

Thus we can conclude that Gonzalo Rotaeche receives more in total compensation than the median of a group of large companies in the same market as CaixaBank, S.A.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at CaixaBank has changed over time.

BME:CABK CEO Compensation, August 9th 2019
BME:CABK CEO Compensation, August 9th 2019

Is CaixaBank, S.A. Growing?

CaixaBank, S.A. has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has CaixaBank, S.A. Been A Good Investment?

CaixaBank, S.A. has generated a total shareholder return of 3.5% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We examined the amount CaixaBank, S.A. pays its CEO, and compared it to the amount paid by other large companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CaixaBank.

If you want to buy a stock that is better than CaixaBank, this free list of high return, low debt companies is a great place to look.

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 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.

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