Is Huntington Bancshares Incorporated (NASDAQ:HBAN) Excessively Paying Its CEO?

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Steve Steinour has been the CEO of Huntington Bancshares Incorporated (NASDAQ:HBAN) since 2009. This analysis aims first to contrast CEO compensation with other large companies. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Huntington Bancshares

How Does Steve Steinour’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Huntington Bancshares Incorporated has a market cap of US$15b, and is paying total annual CEO compensation of US$8.6m. (This number is for the twelve months until December 2018). That’s actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at US$1.1m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).

That means Steve Steinour receives fairly typical remuneration for the CEO of a large company. 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 Huntington Bancshares, below.

NasdaqGS:HBAN CEO Compensation, April 30th 2019
NasdaqGS:HBAN CEO Compensation, April 30th 2019

Is Huntington Bancshares Incorporated Growing?

Over the last three years Huntington Bancshares Incorporated has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). Its revenue is up 4.2% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. 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?

Most shareholders would probably be pleased with Huntington Bancshares Incorporated for providing a total return of 50% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Steve Steinour is paid around what is normal the leaders of larger companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.