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In 1990 Harris Simmons was appointed CEO of Zions Bancorporation, National Association (NASDAQ:ZION). 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 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 Harris Simmons’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Zions Bancorporation, National Association has a market cap of US$9.2b, and is paying total annual CEO compensation of US$3.4m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$960k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.4m.
A first glance this seems like a real positive for shareholders, since Harris Simmons is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Zions Bancorporation National Association, below.
Is Zions Bancorporation, National Association Growing?
On average over the last three years, Zions Bancorporation, National Association has grown earnings per share (EPS) by 39% each year (using a line of best fit). It achieved revenue growth of 9.1% over the 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Zions Bancorporation, National Association Been A Good Investment?
Boasting a total shareholder return of 146% over three years, Zions Bancorporation, National Association 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.
It appears that Zions Bancorporation, National Association remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Harris Simmons deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Zions Bancorporation National Association insiders are buying or selling shares.
Important note: Zions Bancorporation National Association 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.
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.