Peter Ho became the CEO of Bank of Hawaii Corporation (NYSE:BOH) in 2010. 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 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 Peter Ho's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Bank of Hawaii Corporation has a market cap of US$3.6b, and reported total annual CEO compensation of US$5.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$795k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
That means Peter Ho receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Bank of Hawaii has changed from year to year.
Is Bank of Hawaii Corporation Growing?
Bank of Hawaii Corporation has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). It achieved revenue growth of 4.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bank of Hawaii Corporation Been A Good Investment?
With a total shareholder return of 11% over three years, Bank of Hawaii Corporation shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Peter Ho is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bank of Hawaii (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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