In 2008 D. Jordan was appointed CEO of First Horizon National Corporation (NYSE:FHN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does D. Jordan's Compensation Compare With Similar Sized Companies?
According to our data, First Horizon National Corporation has a market capitalization of US$5.1b, and paid its CEO total annual compensation worth US$4.3m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$897k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.4m.
Most shareholders would consider it a positive that D. Jordan takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at First Horizon National has changed from year to year.
Is First Horizon National Corporation Growing?
On average over the last three years, First Horizon National Corporation has grown earnings per share (EPS) by 21% each year (using a line of best fit). In the last year, its revenue is down 5.9%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has First Horizon National Corporation Been A Good Investment?
Since shareholders would have lost about 12% over three years, some First Horizon National Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
First Horizon National Corporation is currently paying its CEO below what is normal for companies of its size.
Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration D. Jordan receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. So you may want to check if insiders are buying First Horizon National shares with their own money (free access).
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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