Bill Demchak has been the CEO of The PNC Financial Services Group Inc (NYSE:PNC) since 2013. This analysis aims first to contrast CEO compensation with other large companies. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Bill Demchak’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The PNC Financial Services Group Inc has a market cap of US$63b, and is paying total annual CEO compensation of US$14m. That’s a modest increase of 5.8% on the prior year year. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m.
So Bill Demchak receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at PNC Financial Services Group has changed over time.
Is The PNC Financial Services Group Inc Growing?
On average over the last three years, The PNC Financial Services Group Inc has grown earnings per share (EPS) by 19% each year. It achieved revenue growth of 7.1% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
You might want to check this free visual report on analyst forecasts for future earnings.
Has The PNC Financial Services Group Inc Been A Good Investment?
Most shareholders would probably be pleased with The PNC Financial Services Group Inc for providing a total return of 58% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Bill Demchak is paid around what is normal the leaders of larger companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying The PNC Financial Services Group Inc shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.