Harris Simmons has been the CEO of Zions Bancorporation, National Association (NASDAQ:ZION) since 1990. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Harris Simmons's Compensation Compare With Similar Sized Companies?
Our data indicates that Zions Bancorporation, National Association is worth US$7.6b, and total annual CEO compensation is US$4.4m. (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$1.0m. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.8m.
Most shareholders would consider it a positive that Harris Simmons takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Zions Bancorporation National Association has changed from year to year.
Is Zions Bancorporation, National Association Growing?
On average over the last three years, Zions Bancorporation, National Association has grown earnings per share (EPS) by 33% each year (using a line of best fit). It achieved revenue growth of 2.6% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Zions Bancorporation, National Association Been A Good Investment?
Most shareholders would probably be pleased with Zions Bancorporation, National Association for providing a total return of 62% 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.
It looks like Zions Bancorporation, National Association pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Harris Simmons deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Zions Bancorporation National Association shares (free trial).
If you want to buy a stock that is better than Zions Bancorporation National Association, this free list of high return, low debt companies is a great place to look.
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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.