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Phil Green has been the CEO of Cullen/Frost Bankers, Inc. (NYSE:CFR) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Phil Green's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Cullen/Frost Bankers, Inc. has a market cap of US$6.3b, and is paying total annual CEO compensation of US$4.6m. (This number is for the twelve months until December 2018). Notably, that's an increase of 10% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$990k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.8m.
Most shareholders would consider it a positive that Phil Green takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Cullen/Frost Bankers has changed from year to year.
Is Cullen/Frost Bankers, Inc. Growing?
Over the last three years Cullen/Frost Bankers, Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is up 8.9% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Cullen/Frost Bankers, Inc. Been A Good Investment?
Boasting a total shareholder return of 77% over three years, Cullen/Frost Bankers, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Cullen/Frost Bankers, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Phil Green deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Cullen/Frost Bankers shares (free trial).
Important note: Cullen/Frost Bankers 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.
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 firstname.lastname@example.org. 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.