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.

 ceo-compensation

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..

Has Bendigo and Adelaide Bank Limited Been A Good Investment?

Since shareholders would have lost about 1.9% over three years, some Bendigo and Adelaide Bank Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The lack lustre share price performance may have something to do with the flat earnings growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Bendigo and Adelaide Bank (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Bendigo and Adelaide Bank, if you're hunting for a pristine balance sheet and premium returns, this freelist of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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