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Is Fulton Financial Corporation's (NASDAQ:FULT) CEO Being Overpaid?

Simply Wall St

In 2013 Phil Wenger was appointed CEO of Fulton Financial Corporation (NASDAQ:FULT). 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Fulton Financial

How Does Phil Wenger's Compensation Compare With Similar Sized Companies?

According to our data, Fulton Financial Corporation has a market capitalization of US$2.9b, and paid its CEO total annual compensation worth US$2.8m over 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. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.

Most shareholders would consider it a positive that Phil Wenger takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Fulton Financial, below.

NasdaqGS:FULT CEO Compensation, January 1st 2020

Is Fulton Financial Corporation Growing?

On average over the last three years, Fulton Financial Corporation has grown earnings per share (EPS) by 14% each year (using a line of best fit). Its revenue is up 8.9% over last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.

Has Fulton Financial Corporation Been A Good Investment?

Fulton Financial Corporation has not done too badly by shareholders, with a total return of 1.0%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

It looks like Fulton Financial Corporation pays its CEO less than similar sized companies.

Since the business is growing, many would argue this suggests the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Phil Wenger 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 Fulton Financial.

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

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.

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. Thank you for reading.