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David Trautman became the CEO of Park National Corporation (NYSEMKT:PRK) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
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How Does David Trautman’s Compensation Compare With Similar Sized Companies?
According to our data, Park National Corporation has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$1.9m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$785k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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 Park National, below.
Is Park National Corporation Growing?
Park National Corporation has increased its earnings per share (EPS) by an average of 7.9% a year, over the last three years (using a line of best fit). Its revenue is up 8.3% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Park National Corporation Been A Good Investment?
With a total shareholder return of 21% over three years, Park National Corporation shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
It appears that Park National Corporation remunerates its CEO below most similar sized companies.
David Trautman receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, from my perspective. So shareholders may not be elated, but they shouldn’t be worried about the CEO compensation, either. Whatever your view on compensation, you might want to check if insiders are buying or selling Park National shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.