Why Huntington Bancshares’ (NASDAQ:HBAN) CEO Pay Matters

This article will reflect on the compensation paid to Steve Steinour who has served as CEO of Huntington Bancshares Incorporated (NASDAQ:HBAN) since 2009. This analysis will also assess whether Huntington Bancshares pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Huntington Bancshares

How Does Total Compensation For Steve Steinour Compare With Other Companies In The Industry?

According to our data, Huntington Bancshares Incorporated has a market capitalization of US$10b, and paid its CEO total annual compensation worth US$7.5m over the year to December 2019. Notably, that’s a decrease of 12% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$13m. That is to say, Steve Steinour is paid under the industry median. What’s more, Steve Steinour holds US$58m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20192018Proportion (2019)
Salary US$1.1m US$1.1m 15%
Other US$6.4m US$7.5m 85%
Total CompensationUS$7.5m US$8.6m100%

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Huntington Bancshares sets aside a smaller share of compensation for salary, in comparison to the overall industry. It’s important to note that a slant towards non-salary compensation suggests that total pay is tied to the company’s performance.

ceo-compensation
NasdaqGS:HBAN CEO Compensation September 8th 2020

A Look at Huntington Bancshares Incorporated’s Growth Numbers

Huntington Bancshares Incorporated’s earnings per share (EPS) grew 2.6% per year over the last three years. In the last year, its revenue is down 15%.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. It’s hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Huntington Bancshares Incorporated Been A Good Investment?

Since shareholders would have lost about 12% over three years, some Huntington Bancshares Incorporated investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude…

As we noted earlier, Huntington Bancshares pays its CEO lower than the norm for similar-sized companies belonging to the same industry. But then, EPS growth is lacking and so are the returns to shareholders. So while we don’t think, Steve is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Huntington Bancshares (free visualization of insider trades).

Switching gears from Huntington Bancshares, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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