How Much is CVB Financial Corp.’s (NASDAQ:CVBF) CEO Getting Paid?
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Chris Myers became the CEO of CVB Financial Corp. (NASDAQ:CVBF) in 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for CVB Financial
How Does Chris Myers’s Compensation Compare With Similar Sized Companies?
According to our data, CVB Financial Corp. has a market capitalization of US$3.2b, and pays its CEO total annual compensation worth US$2.1m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$800k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$4.7m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at CVB Financial has changed over time.
Is CVB Financial Corp. Growing?
On average over the last three years, CVB Financial Corp. has grown earnings per share (EPS) by 6.4% each year (using a line of best fit). It achieved revenue growth of 21% over the last year.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has CVB Financial Corp. Been A Good Investment?
I think that the total shareholder return of 58%, over three years, would leave most CVB Financial Corp. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
It looks like CVB Financial Corp. pays its CEO less than similar sized companies.
It’s well worth noting that while Chris Myers is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Whatever your view on compensation, you might want to check if insiders are buying or selling CVB Financial shares (free trial).
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 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. On rare occasion, data errors may occur. Thank you for reading.
