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Rune Fjeldstad became the CEO of SpareBank 1 BV (OB:SBVG) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for SpareBank 1 BV

How Does Rune Fjeldstad’s Compensation Compare With Similar Sized Companies?

Our data indicates that SpareBank 1 BV is worth øre2.4b, and total annual CEO compensation is øre7.9m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at øre2.8m. We looked at a group of companies with market capitalizations from øre865m to øre3.5b, and the median CEO compensation was øre3.7m.

As you can see, Rune Fjeldstad is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean SpareBank 1 BV is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at SpareBank 1 BV, below.

Is SpareBank 1 BV Growing?

SpareBank 1 BV has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). It saw its revenue drop -1.2% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.

Has SpareBank 1 BV Been A Good Investment?

Most shareholders would probably be pleased with SpareBank 1 BV for providing a total return of 149% over three years. 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…

We examined the amount SpareBank 1 BV pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at SpareBank 1 BV.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.