In 2009 Steve Steinour was appointed CEO of Huntington Bancshares Incorporated (NASDAQ:HBAN). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Steve Steinour’s Compensation Compare With Similar Sized Companies?
Our data indicates that Huntington Bancshares Incorporated is worth US$14b, and total annual CEO compensation is US$8.6m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.1m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
So Steve Steinour 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 Huntington Bancshares has changed over time.
Is Huntington Bancshares Incorporated Growing?
Over the last three years Huntington Bancshares Incorporated has grown its earnings per share (EPS) by an average of 24% per year (using a line of best fit). It achieved revenue growth of 6.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
Has Huntington Bancshares Incorporated Been A Good Investment?
Boasting a total shareholder return of 52% over three years, Huntington Bancshares Incorporated has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Steve Steinour is paid around the same as most CEOs of large companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Huntington Bancshares shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.