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Is Hancock Whitney Corporation's (NASDAQ:HWC) CEO Pay Fair?

In 2008, John Hairston was appointed CEO of Hancock Whitney Corporation (NASDAQ:HWC). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Hancock Whitney

How Does John Hairston's Compensation Compare With Similar Sized Companies?

According to our data, Hancock Whitney Corporation has a market capitalization of US$1.6b, and paid its CEO total annual compensation worth US$4.0m over the year to December 2019. That's a modest increase of 7.6% on the prior year year. We think total compensation is more important but we note that the CEO salary is lower, at US$974k. 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$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.8m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Hancock Whitney. Speaking on an industry level, we can see that nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Hancock Whitney sets aside a smaller share of compensation for salary, in comparison to the overall industry.

So John Hairston is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at Hancock Whitney, below.

NasdaqGS:HWC CEO Compensation April 23rd 2020
NasdaqGS:HWC CEO Compensation April 23rd 2020

Is Hancock Whitney Corporation Growing?

On average over the last three years, Hancock Whitney Corporation has seen earnings per share (EPS) move in a favourable direction by 23% each year (using a line of best fit). In the last year, its revenue is up 6.0%.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has Hancock Whitney Corporation Been A Good Investment?

Given the total loss of 58% over three years, many shareholders in Hancock Whitney Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

John Hairston is paid around what is normal for the leaders of comparable size companies.

We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. CEO compensation is an important area to keep your eyes on, but we've also identified 2 warning signs for Hancock Whitney (1 is a bit unpleasant!) that you should be aware of before investing here.

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.

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