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Is Bank of Hawaii Corporation's (NYSE:BOH) CEO Overpaid Relative To Its Peers?

Simply Wall St

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Peter Ho has been the CEO of Bank of Hawaii Corporation (NYSE:BOH) since 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Bank of Hawaii

How Does Peter Ho's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Bank of Hawaii Corporation has a market cap of US$3.3b, and is paying total annual CEO compensation of US$5.2m. (This number is for the twelve months until December 2018). That's a notable increase of 11% on last year. While we always look at total compensation first, we note that the salary component is less, at US$795k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.

So Peter Ho receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Bank of Hawaii has changed over time.

NYSE:BOH CEO Compensation, May 9th 2019

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 9.8% per year (using a line of best fit). It achieved revenue growth of 4.0% over the last year.

I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has Bank of Hawaii Corporation Been A Good Investment?

Bank of Hawaii Corporation has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Peter Ho is paid around what is normal the leaders of comparable size companies.

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While the CEO may not be underpaid, we don't think the pay is too generous either. So you may want to check if insiders are buying Bank of Hawaii shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.