In 2014 Todd Clossin was appointed CEO of WesBanco, Inc. (NASDAQ:WSBC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Todd Clossin's Compensation Compare With Similar Sized Companies?
Our data indicates that WesBanco, Inc. is worth US$2.0b, and total annual CEO compensation was reported as US$1.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$812k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.1m.
A first glance this seems like a real positive for shareholders, since Todd Clossin is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at WesBanco has changed from year to year.
Is WesBanco, Inc. Growing?
Over the last three years WesBanco, Inc. has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). In the last year, its revenue is up 27%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has WesBanco, Inc. Been A Good Investment?
WesBanco, Inc. has served shareholders reasonably well, with a total return of 24% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
WesBanco, Inc. is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Todd Clossin is paid too much. It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at WesBanco.
Important note: WesBanco may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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