In 1984 Richard Adams was appointed CEO of United Bankshares Inc (NASDAQ:UBSI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Richard Adams’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that United Bankshares Inc has a market cap of US$3.4b, and is paying total annual CEO compensation of US$4m. That’s a notable increase of 43% on last year. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m.
So Richard Adams is paid around the average of 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 a visual representation of the CEO compensation at United Bankshares, below.
Is United Bankshares Inc Growing?
Over the last three years United Bankshares Inc has shrunk its earnings per share by an average of 4.5% per year. It achieved revenue growth of 32% over the last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has United Bankshares Inc Been A Good Investment?
Since shareholders would have lost about 11% over three years, some United Bankshares Inc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Richard Adams is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And it’s hard to argue that the returns over the last three years have delighted. This contrasts with the growth in CEO remuneration. So many would argue that the CEO is certainly not underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at United Bankshares Inc.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 firstname.lastname@example.org.