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In 2014 Steve Bradshaw was appointed CEO of BOK Financial Corporation (NASDAQ:BOKF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steve Bradshaw's Compensation Compare With Similar Sized Companies?
Our data indicates that BOK Financial Corporation is worth US$5.6b, and total annual CEO compensation is US$4.8m. (This number is for the twelve months until December 2018). We note that's an increase of 56% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$991k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.9m.
A first glance this seems like a real positive for shareholders, since Steve Bradshaw 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.
You can see, below, how CEO compensation at BOK Financial has changed over time.
Is BOK Financial Corporation Growing?
Over the last three years BOK Financial Corporation has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). Its revenue is up 5.6% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has BOK Financial Corporation Been A Good Investment?
With a total shareholder return of 30% over three years, BOK Financial Corporation shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It looks like BOK Financial Corporation pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Steve Bradshaw is overcompensated.
It's good to see reasonable payment of the CEO, even while the business improves. It would be an additional positive if insiders are buying shares. So you may want to check if insiders are buying BOK Financial shares with their own money (free access).
If you want to buy a stock that is better than BOK Financial, this free list of high return, low debt companies is a great place to look.
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 email@example.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.