In 2004 J. Kemper was appointed CEO of UMB Financial Corporation (NASDAQ:UMBF). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does J. Kemper's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that UMB Financial Corporation has a market cap of US$3.1b, and reported total annual CEO compensation of US$3.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$905k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
That means J. Kemper receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at UMB Financial has changed over time.
Is UMB Financial Corporation Growing?
Over the last three years UMB Financial Corporation has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). Revenue was pretty flat on last year.
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 UMB Financial Corporation Been A Good Investment?
With a total shareholder return of 9.2% over three years, UMB Financial Corporation has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
J. Kemper is paid around what is normal the leaders of comparable size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling UMB Financial (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.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.