Jerry Host has been the CEO of Trustmark Corporation (NASDAQ:TRMK) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jerry Host’s Compensation Compare With Similar Sized Companies?
According to our data, Trustmark Corporation has a market capitalization of US$2.0b, and pays its CEO total annual compensation worth US$2.6m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$757k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.6m.
So Jerry Host is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Trustmark has changed from year to year.
Is Trustmark Corporation Growing?
Trustmark Corporation has increased its earnings per share (EPS) by an average of 2.8% a year, over the last three years It achieved revenue growth of 1.0% over the last year.
I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Trustmark Corporation Been A Good Investment?
Boasting a total shareholder return of 36% over three years, Trustmark Corporation has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
Jerry Host is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. So you may want to check if insiders are buying Trustmark shares with their own money (free access).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 email@example.com.