Vince Delie became the CEO of F.N.B. Corporation (NYSE:FNB) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Vince Delie's Compensation Compare With Similar Sized Companies?
Our data indicates that F.N.B. Corporation is worth US$4.0b, and total annual CEO compensation was reported as US$6.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.1m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
So Vince Delie is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at F.N.B, below.
Is F.N.B. Corporation Growing?
F.N.B. Corporation has increased its earnings per share (EPS) by an average of 18% a year, over the last three years (using a line of best fit). Its revenue is up 1.9% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has F.N.B. Corporation Been A Good Investment?
Given the total loss of 1.9% over three years, many shareholders in F.N.B. Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Vince Delie is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. So you may want to check if insiders are buying F.N.B shares with their own money (free access).
Important note: F.N.B may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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