Does OFG Bancorp’s (NYSE:OFG) CEO Salary Reflect Performance?
José Fernández has been the CEO of OFG Bancorp (NYSE:OFG) since 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does José Fernández’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that OFG Bancorp has a market cap of US$863m, and is paying total annual CEO compensation of US$2.3m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$865k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.3m.
So José Fernández is paid around the average of 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 a visual representation of the CEO compensation at OFG Bancorp, below.
Is OFG Bancorp Growing?
On average over the last three years, OFG Bancorp has grown earnings per share (EPS) by 58% each year (using a line of best fit). It saw its revenue drop -7.8% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
You might want to check this free visual report on analyst forecasts for future earnings.
Has OFG Bancorp Been A Good Investment?
Most shareholders would probably be pleased with OFG Bancorp for providing a total return of 203% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
José Fernández is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at OFG Bancorp.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 editorial-team@simplywallst.com.
