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What Did First Horizon National's (NYSE:FHN) CEO Take Home Last Year?

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D. Jordan became the CEO of First Horizon National Corporation (NYSE:FHN) in 2008, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether First Horizon National pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for First Horizon National

Comparing First Horizon National Corporation's CEO Compensation With the industry

Our data indicates that First Horizon National Corporation has a market capitalization of US$2.8b, and total annual CEO compensation was reported as US$5.6m for the year to December 2019. We note that's an increase of 28% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$900k.

For comparison, other companies in the same industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$4.8m. This suggests that First Horizon National remunerates its CEO largely in line with the industry average. Moreover, D. Jordan also holds US$6.7m worth of First Horizon National stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$900k

US$897k

16%

Other

US$4.7m

US$3.4m

84%

Total Compensation

US$5.6m

US$4.3m

100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. First Horizon National sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

First Horizon National Corporation's Growth

First Horizon National Corporation has seen its earnings per share (EPS) increase by 4.5% a year over the past three years. Its revenue is down 10% over the previous year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has First Horizon National Corporation Been A Good Investment?

With a three year total loss of 44% for the shareholders, First Horizon National Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, D. is compensated close to the median for companies of its size, and which belong to the same industry. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat earnings growth. We'd stop short of saying CEO compensation is inappropriate, but without an improvement in performance, it's sure to draw criticism. Shareholders will also not want to see performance improving before agreeing to any raise.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for First Horizon National (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

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. 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.

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