In This Article:
Gonzalo Rotaeche has been the CEO of CaixaBank SA (BME:CABK) since 2014. First, this article will compare CEO compensation with compensation at other large 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.
See our latest analysis for CaixaBank
How Does Gonzalo Rotaeche’s Compensation Compare With Similar Sized Companies?
According to our data, CaixaBank SA has a market capitalization of US$22b, and pays its CEO total annual compensation worth US$2.8m. That’s a fairly small increase of 0.6% on year before. We took a group of companies with market capitalizations over €7.0b, and calculated the median CEO compensation to be €4.3m.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at CaixaBank, below.
Is CaixaBank SA Growing?
CaixaBank SA has increased its earnings per share (EPS) by an average of 36% a year, over the last three years Its revenue is up 9.9% over last year.
This demonstrates that the company has been improving recently. A good result. 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 SA Been A Good Investment?
CaixaBank SA has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
CaixaBank SA is currently paying its CEO below what is normal for large companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven’t been top notch, there is nothing to suggest to us that Gonzalo Rotaeche is overcompensated.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it’s even better if insiders are also buying shares with their own cold, hard, cash. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CaixaBank SA (free visualization of insider trades).