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Does Cathay General Bancorp's (NASDAQ:CATY) CEO Salary Compare Well With Others?

Simply Wall St

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Pin Tai has been the CEO of Cathay General Bancorp (NASDAQ:CATY) since 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for Cathay General Bancorp

How Does Pin Tai's Compensation Compare With Similar Sized Companies?

Our data indicates that Cathay General Bancorp is worth US$2.8b, and total annual CEO compensation is US$2.3m. (This number is for the twelve months until December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$784k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m.

Most shareholders would consider it a positive that Pin Tai takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Cathay General Bancorp has changed over time.

NasdaqGS:CATY CEO Compensation, June 27th 2019
NasdaqGS:CATY CEO Compensation, June 27th 2019

Is Cathay General Bancorp Growing?

Over the last three years Cathay General Bancorp has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). Its revenue is up 12% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Cathay General Bancorp Been A Good Investment?

Boasting a total shareholder return of 36% over three years, Cathay General Bancorp has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Cathay General Bancorp is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Pin Tai deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Cathay General Bancorp shares (free trial).

If you want to buy a stock that is better than Cathay General Bancorp, this free list of high return, low debt companies is a great place to look.

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.