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How Should Investors React To Associated Banc-Corp’s (NYSE:ASB) CEO Pay?

Ray Foley

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In 2009 Phil Flynn was appointed CEO of Associated Banc-Corp (NYSE:ASB). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Associated Banc-Corp

How Does Phil Flynn’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Associated Banc-Corp has a market cap of US$3.7b, and is paying total annual CEO compensation of US$4.8m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.3m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.8m.

That means Phil Flynn receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Associated Banc-Corp, below.

NYSE:ASB CEO Compensation February 12th 19

Is Associated Banc-Corp Growing?

On average over the last three years, Associated Banc-Corp has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is up 18% over 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 decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has Associated Banc-Corp Been A Good Investment?

I think that the total shareholder return of 44%, over three years, would leave most Associated Banc-Corp shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Phil Flynn is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Associated Banc-Corp insiders are buying or selling shares.

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

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 editorial-team@simplywallst.com.