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Is Associated Banc-Corp (NYSE:ASB) Overpaying Its CEO?

Simply Wall St

Phil Flynn has been the CEO of Associated Banc-Corp (NYSE:ASB) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for Associated Banc-Corp

How Does Phil Flynn's Compensation Compare With Similar Sized Companies?

According to our data, Associated Banc-Corp has a market capitalization of US$3.2b, and paid its CEO total annual compensation worth US$5.2m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.3m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.

That means Phil Flynn receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Associated Banc-Corp, below.

NYSE:ASB CEO Compensation, October 29th 2019

Is Associated Banc-Corp Growing?

Associated Banc-Corp has increased its earnings per share (EPS) by an average of 18% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.2% over the last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has Associated Banc-Corp Been A Good Investment?

With a total shareholder return of 8.7% over three years, Associated Banc-Corp has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Phil Flynn is paid around the same as most CEOs of similar size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Associated Banc-Corp.

Important note: Associated Banc-Corp may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.