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How Should Investors React To KeyCorp’s (NYSE:KEY) CEO Pay?

Beth Mooney has been the CEO of KeyCorp (NYSE:KEY) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for KeyCorp

How Does Beth Mooney’s Compensation Compare With Similar Sized Companies?

Our data indicates that KeyCorp is worth US$18b, and total annual CEO compensation is US$8.1m. That’s actually a decrease on the year before. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.

That means Beth Mooney receives fairly typical remuneration for the CEO of a large company. 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 KeyCorp, below.

NYSE:KEY CEO Compensation November 22nd 18

Is KeyCorp Growing?

KeyCorp has increased its earnings per share (EPS) by an average of 11% a year, over the last three years In the last year, its revenue is up 2.9%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 KeyCorp Been A Good Investment?

Boasting a total shareholder return of 47% over three years, KeyCorp has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Remuneration for Beth Mooney is close enough to the median pay for a CEO of a large company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance!

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 editorial-team@simplywallst.com.