Should You Worry About Bankinter, S.A.'s (BME:BKT) CEO Pay Cheque?

In This Article:

María Dolores Dancausa Treviño became the CEO of Bankinter, S.A. (BME:BKT) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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 Bankinter

How Does María Dolores Dancausa Treviño's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Bankinter, S.A. has a market cap of €4.9b, and is paying total annual CEO compensation of €1.1m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at €876k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €3.6b to €11b. The median total CEO compensation was €100k.

Thus we can conclude that María Dolores Dancausa Treviño receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bankinter, 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 a visual representation of the CEO compensation at Bankinter, below.

BME:BKT CEO Compensation, August 13th 2019
BME:BKT CEO Compensation, August 13th 2019

Is Bankinter, S.A. Growing?

Bankinter, S.A. has increased its earnings per share (EPS) by an average of 4.8% a year, over the last three years (using a line of best fit). Its revenue is up 3.0% over last year.

I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. You might want to check this free visual report on analyst forecasts for future earnings.

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

Since shareholders would have lost about 5.4% over three years, some Bankinter, S.A. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Bankinter, S.A., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling Bankinter shares (free trial).