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The performance at Bendigo and Adelaide Bank Limited (ASX:BEN) has been rather lacklustre of late and shareholders may be wondering what CEO Marnie Baker is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 08 November 2022. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
View our latest analysis for Bendigo and Adelaide Bank
How Does Total Compensation For Marnie Baker Compare With Other Companies In The Industry?
At the time of writing, our data shows that Bendigo and Adelaide Bank Limited has a market capitalization of AU$5.1b, and reported total annual CEO compensation of AU$1.9m for the year to June 2022. This means that the compensation hasn't changed much from last year. We note that the salary of AU$1.10m makes up a sizeable portion of the total compensation received by the CEO.
On examining similar-sized companies in the industry with market capitalizations between AU$3.1b and AU$10.0b, we discovered that the median CEO total compensation of that group was AU$3.0m. Accordingly, Bendigo and Adelaide Bank pays its CEO under the industry median. What's more, Marnie Baker holds AU$12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | AU$1.1m | AU$1.2m | 57% |
| Other | AU$823k | AU$752k | 43% |
| Total Compensation | AU$1.9m | AU$1.9m | 100% |
Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. Bendigo and Adelaide Bank pays out 57% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Bendigo and Adelaide Bank Limited's Growth Numbers
Over the past three years, Bendigo and Adelaide Bank Limited has seen its earnings per share (EPS) grow by 3.8% per year. It achieved revenue growth of 3.0% over the last year.
We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..