Chris Myers has been the CEO of CVB Financial Corp. (NASDAQ:CVBF) since 2006. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Chris Myers's Compensation Compare With Similar Sized Companies?
According to our data, CVB Financial Corp. has a market capitalization of US$3.0b, and pays its CEO total annual compensation worth US$7.7m. (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$828k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
As you can see, Chris Myers is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CVB Financial Corp. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at CVB Financial has changed over time.
Is CVB Financial Corp. Growing?
CVB Financial Corp. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 39%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has CVB Financial Corp. Been A Good Investment?
Most shareholders would probably be pleased with CVB Financial Corp. for providing a total return of 37% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by CVB Financial Corp., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling CVB Financial shares (free trial).
Important note: CVB Financial 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.