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Is United Bankshares, Inc. (NASDAQ:UBSI) Excessively Paying Its CEO?

Simply Wall St

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In 1984 Richard Adams was appointed CEO of United Bankshares, Inc. (NASDAQ:UBSI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for United Bankshares

How Does Richard Adams's Compensation Compare With Similar Sized Companies?

Our data indicates that United Bankshares, Inc. is worth US$3.8b, and total annual CEO compensation is US$3.3m. (This number is for the twelve months until December 2018). That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at US$1.1m. 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$4.8m.

Most shareholders would consider it a positive that Richard Adams takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at United Bankshares has changed over time.

NasdaqGS:UBSI CEO Compensation, April 3rd 2019

Is United Bankshares, Inc. Growing?

Over the last three years United Bankshares, Inc. has grown its earnings per share (EPS) by an average of 1.3% per year (using a line of best fit). Its revenue is up 6.2% over last year.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.

Has United Bankshares, Inc. Been A Good Investment?

With a total shareholder return of 15% over three years, United Bankshares, Inc. shareholders would, in general, be reasonably content. 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.

In Summary...

It looks like United Bankshares, Inc. pays its CEO less than similar sized companies.

Richard Adams is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. However I do not find the CEO compensation to be concerning. Whatever your view on compensation, you might want to check if insiders are buying or selling United Bankshares shares (free trial).

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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. Thank you for reading.