John Asbury became the CEO of Atlantic Union Bankshares Corporation (NASDAQ:AUB) in 2017. 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. 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 John Asbury's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Atlantic Union Bankshares Corporation has a market cap of US$2.8b, and reported total annual CEO compensation of US$2.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$674k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. 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$4.9m.
A first glance this seems like a real positive for shareholders, since John Asbury is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Atlantic Union Bankshares, below.
Is Atlantic Union Bankshares Corporation Growing?
Atlantic Union Bankshares Corporation has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). Its revenue is up 36% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Atlantic Union Bankshares Corporation Been A Good Investment?
Atlantic Union Bankshares Corporation has generated a total shareholder return of 1.5% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that Atlantic Union Bankshares Corporation remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that John Asbury is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. Whatever your view on compensation, you might want to check if insiders are buying or selling Atlantic Union Bankshares shares (free trial).
Important note: Atlantic Union Bankshares 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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