Kevin Kim became the CEO of Hope Bancorp, Inc. (NASDAQ:HOPE) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
How Does Kevin Kim's Compensation Compare With Similar Sized Companies?
Our data indicates that Hope Bancorp, Inc. is worth US$1.7b, and total annual CEO compensation is US$2.6m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$916k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.
Most shareholders would consider it a positive that Kevin Kim takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Hope Bancorp, below.
Is Hope Bancorp, Inc. Growing?
On average over the last three years, Hope Bancorp, Inc. has grown earnings per share (EPS) by 8.5% each year (using a line of best fit). It saw its revenue drop -5.5% over the last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Hope Bancorp, Inc. Been A Good Investment?
Given the total loss of 9.9% over three years, many shareholders in Hope Bancorp, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It appears that Hope Bancorp, Inc. remunerates its CEO below most similar sized companies.
Kevin Kim receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. So you may want to check if insiders are buying Hope Bancorp shares with their own money (free access).
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.
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