U.S. Markets closed

Does Pinnacle Financial Partners, Inc.'s (NASDAQ:PNFP) CEO Pay Reflect Performance?

Simply Wall St

In 2000 Michael Turner was appointed CEO of Pinnacle Financial Partners, Inc. (NASDAQ:PNFP). 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.

View our latest analysis for Pinnacle Financial Partners

How Does Michael Turner's Compensation Compare With Similar Sized Companies?

According to our data, Pinnacle Financial Partners, Inc. has a market capitalization of US$4.1b, and pays its CEO total annual compensation worth US$4.4m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.

So Michael Turner receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Pinnacle Financial Partners has changed from year to year.

NasdaqGS:PNFP CEO Compensation, August 19th 2019

Is Pinnacle Financial Partners, Inc. Growing?

Pinnacle Financial Partners, Inc. has increased its earnings per share (EPS) by an average of 20% a year, over the last three years (using a line of best fit). Its revenue is up 13% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Pinnacle Financial Partners, Inc. Been A Good Investment?

Pinnacle Financial Partners, Inc. has generated a total shareholder return of 1.1% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Michael Turner is paid around the same as most CEOs of similar size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Pinnacle Financial Partners insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.