Peter Ho became the CEO of Bank of Hawaii Corporation (NYSE:BOH) 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Peter Ho’s Compensation Compare With Similar Sized Companies?
According to our data, Bank of Hawaii Corporation has a market capitalization of US$2.9b, and pays its CEO total annual compensation worth US$4.7m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$780k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5.1m.
That means Peter Ho 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 Bank of Hawaii, below.
Is Bank of Hawaii Corporation Growing?
Over the last three years Bank of Hawaii Corporation has grown its earnings per share (EPS) by an average of 8.5% per year (using a line of best fit). It achieved revenue growth of 2.8% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but I’m happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Bank of Hawaii Corporation Been A Good Investment?
Bank of Hawaii Corporation has generated a total shareholder return of 30% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Peter Ho is paid around the same as most CEOs of similar size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don’t think the CEO compensation is a problem. So you may want to check if insiders are buying Bank of Hawaii shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.