In 2010 Jack Barnes was appointed CEO of People’s United Financial Inc (NASDAQ:PBCT). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jack Barnes’s Compensation Compare With Similar Sized Companies?
According to our data, People’s United Financial Inc has a market capitalization of US$6.1b, and pays its CEO total annual compensation worth US$5.1m. (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$1.1m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO compensation was US$6.6m.
So Jack Barnes is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at People’s United Financial has changed from year to year.
Is People’s United Financial Inc Growing?
People’s United Financial Inc has increased its earnings per share (EPS) by an average of 12% a year, over the last three years Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
It could be important to check this free visual depiction of >what analysts expect for the future
>what analysts expect for the future.
Has People’s United Financial Inc Been A Good Investment?
People’s United Financial Inc has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Jack Barnes is paid around what is normal the leaders of comparable size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if People’s United Financial insiders are buying or selling shares.
the past can be informative so you might be interested in considering this >analytical visualization showing the company history of earnings and revenue
>analytical visualization showing the company history of 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 protected].
Source : https://finance.yahoo.com/news/does-people-united-financial-inc-171834462.html