Bruce Van Saun became the CEO of Citizens Financial Group, Inc. (NYSE:CFG) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. 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.
How Does Bruce Van Saun's Compensation Compare With Similar Sized Companies?
According to our data, Citizens Financial Group, Inc. has a market capitalization of US$18b, and paid its CEO total annual compensation worth US$9.4m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.5m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
That means Bruce Van Saun receives fairly typical remuneration for the CEO of a large company. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Citizens Financial Group has changed from year to year.
Is Citizens Financial Group, Inc. Growing?
On average over the last three years, Citizens Financial Group, Inc. has grown earnings per share (EPS) by 24% each year (using a line of best fit). In the last year, its revenue is up 6.5%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Citizens Financial Group, Inc. Been A Good Investment?
With a total shareholder return of 22% over three years, Citizens Financial Group, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Bruce Van Saun is close enough to the median pay for a CEO of a large company .
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying Citizens Financial Group shares with their own money (free access).
If you want to buy a stock that is better than Citizens Financial Group, this free list of high return, low debt companies is a great place to look.
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