John Asbury became the CEO of Atlantic Union Bankshares Corporation (NASDAQ:AUB) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does John Asbury's Compensation Compare With Similar Sized Companies?
According to our data, Atlantic Union Bankshares Corporation has a market capitalization of US$3.1b, and pays its CEO total annual compensation worth US$2.3m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$674k. 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$5.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Atlantic Union Bankshares has changed from year to year.
Is Atlantic Union Bankshares Corporation Growing?
Over the last three years Atlantic Union Bankshares Corporation has grown its earnings per share (EPS) by an average of 12% per year (using a line of best fit). In the last year, its revenue is up 31%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Atlantic Union Bankshares Corporation Been A Good Investment?
Boasting a total shareholder return of 50% over three years, Atlantic Union Bankshares Corporation has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Atlantic Union Bankshares Corporation remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that John Asbury deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Atlantic Union Bankshares (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.