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A Quick Analysis On First Citizens BancShares' (NASDAQ:FCNC.A) CEO Compensation

Frank Holding has been the CEO of First Citizens BancShares, Inc. (NASDAQ:FCNC.A) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for First Citizens BancShares.

Check out our latest analysis for First Citizens BancShares

How Does Total Compensation For Frank Holding Compare With Other Companies In The Industry?

According to our data, First Citizens BancShares, Inc. has a market capitalization of US$4.1b, and paid its CEO total annual compensation worth US$4.0m over the year to December 2019. That's a notable increase of 43% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$964k.

On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$4.7m. So it looks like First Citizens BancShares compensates Frank Holding in line with the median for the industry. Moreover, Frank Holding also holds US$1.1b worth of First Citizens BancShares stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$964k

US$955k

24%

Other

US$3.1m

US$1.9m

76%

Total Compensation

US$4.0m

US$2.8m

100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. It's interesting to note that First Citizens BancShares allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

A Look at First Citizens BancShares, Inc.'s Growth Numbers

First Citizens BancShares, Inc.'s earnings per share (EPS) grew 23% per year over the last three years. In the last year, its revenue is up 4.2%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has First Citizens BancShares, Inc. Been A Good Investment?

First Citizens BancShares, Inc. has served shareholders reasonably well, with a total return of 12% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As previously discussed, Frank is compensated close to the median for companies of its size, and which belong to the same industry. But earnings growth over the last three years has been impressive, although the same cannot be said for shareholder returns. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.

Shareholders may want to check for free if First Citizens BancShares insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.