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Cort O’Haver became the CEO of Umpqua Holdings Corporation (NASDAQ:UMPQ) in 2017. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Cort O’Haver's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Umpqua Holdings Corporation has a market cap of US$3.7b, and is paying total annual CEO compensation of US$3.6m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$850k. 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$5.2m.
Most shareholders would consider it a positive that Cort O’Haver 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 a visual representation of the CEO compensation at Umpqua Holdings, below.
Is Umpqua Holdings Corporation Growing?
Over the last three years Umpqua Holdings 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.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Umpqua Holdings Corporation Been A Good Investment?
With a total shareholder return of 25% over three years, Umpqua Holdings Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that Umpqua Holdings Corporation remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Cort O’Haver is overcompensated.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Umpqua Holdings.
If you want to buy a stock that is better than Umpqua Holdings, 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 firstname.lastname@example.org. 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.