In 2012 Vince Delie was appointed CEO of F.N.B. Corporation (NYSE:FNB). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Vince Delie’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that F.N.B. Corporation has a market cap of US$3.8b, and is paying total annual CEO compensation of US$5.3m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.6m.
So Vince Delie receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at F.N.B, below.
Is F.N.B. Corporation Growing?
On average over the last three years, F.N.B. Corporation has grown earnings per share (EPS) by 6.4% each year (using a line of best fit). Its revenue is up 11% over last year.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we’ll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.
Has F.N.B. Corporation Been A Good Investment?
F.N.B. Corporation has not done too badly by shareholders, with a total return of 1.1%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Vince Delie is paid around what is normal the leaders of comparable size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. So you may want to check if insiders are buying F.N.B shares with their own money (free access).
If you want to buy a stock that is better than F.N.B, this free list of high return, low debt companies is a great place to look.
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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.