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Shareholders Will Probably Not Have Any Issues With Zions Bancorporation, National Association's (NASDAQ:ZION) CEO Compensation

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·4 min read
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CEO Harris Simmons has done a decent job of delivering relatively good performance at Zions Bancorporation, National Association (NASDAQ:ZION) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30 April 2021. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Zions Bancorporation National Association

How Does Total Compensation For Harris Simmons Compare With Other Companies In The Industry?

Our data indicates that Zions Bancorporation, National Association has a market capitalization of US$8.9b, and total annual CEO compensation was reported as US$4.8m for the year to December 2020. We note that's an increase of 15% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

On examining similar-sized companies in the industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$4.8m. This suggests that Zions Bancorporation National Association remunerates its CEO largely in line with the industry average. Furthermore, Harris Simmons directly owns US$70m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2020

2019

Proportion (2020)

Salary

US$1.0m

US$1.0m

21%

Other

US$3.8m

US$3.2m

79%

Total Compensation

US$4.8m

US$4.2m

100%

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. In Zions Bancorporation National Association's case, non-salary compensation represents a greater slice of total remuneration, 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

Zions Bancorporation, National Association's Growth

Zions Bancorporation, National Association has seen its earnings per share (EPS) increase by 15% a year over the past three years. It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Zions Bancorporation, National Association Been A Good Investment?

Zions Bancorporation, National Association has generated a total shareholder return of 6.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Zions Bancorporation National Association that you should be aware of before investing.

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 (at) simplywallst.com.