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Is Wintrust Financial Corporation (NASDAQ:WTFC) Excessively Paying Its CEO?

Simply Wall St

Ed Wehmer has been the CEO of Wintrust Financial Corporation (NASDAQ:WTFC) since 1998. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Wintrust Financial

How Does Ed Wehmer's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Wintrust Financial Corporation has a market cap of US$3.5b, and is paying total annual CEO compensation of US$4.9m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.2m. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.

That means Ed Wehmer receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at Wintrust Financial has changed from year to year.

NasdaqGS:WTFC CEO Compensation, August 28th 2019
NasdaqGS:WTFC CEO Compensation, August 28th 2019

Is Wintrust Financial Corporation Growing?

On average over the last three years, Wintrust Financial Corporation has grown earnings per share (EPS) by 21% each year (using a line of best fit). It achieved revenue growth of 9.7% over the last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.

Has Wintrust Financial Corporation Been A Good Investment?

With a total shareholder return of 13% over three years, Wintrust Financial Corporation 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...

Ed Wehmer is paid around what is normal the leaders of comparable size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Wintrust Financial insiders are buying or selling shares.

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.