Aurelio Alemán-Bermudez became the CEO of First BanCorp. (NYSE:FBP) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Aurelio Alemán-Bermudez's Compensation Compare With Similar Sized Companies?
According to our data, First BanCorp. has a market capitalization of US$2.2b, and pays its CEO total annual compensation worth US$4.1m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$959k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
That means Aurelio Alemán-Bermudez receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at First BanCorp has changed from year to year.
Is First BanCorp. Growing?
First BanCorp. has increased its earnings per share (EPS) by an average of 37% a year, over the last three years (using a line of best fit). Its revenue is up 16% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has First BanCorp. Been A Good Investment?
I think that the total shareholder return of 111%, over three years, would leave most First BanCorp. shareholders smiling. 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.
Aurelio Alemán-Bermudez is paid around the same as most CEOs of similar size companies.
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! Shareholders may want to check for free if First BanCorp insiders are buying or selling shares.
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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