We Think The Compensation For Hancock Whitney Corporation's (NASDAQ:HWC) CEO Looks About Right

Key Insights

• Hancock Whitney's Annual General Meeting to take place on 24th of April
• Total pay for CEO John Hairston includes US$1.17m salary
• The overall pay is comparable to the industry average
• Hancock Whitney's total shareholder return over the past three years was 11% while its EPS grew by 28% over the past three years

Under the guidance of CEO John Hairston, Hancock Whitney Corporation (NASDAQ:HWC) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of April. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Hancock Whitney

Comparing Hancock Whitney Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Hancock Whitney Corporation has a market capitalization of US$3.7b, and reported total annual CEO compensation of US$5.6m for the year to December 2023. That's a notable decrease of 16% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

On examining similar-sized companies in the American Banks industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$4.7m. From this we gather that John Hairston is paid around the median for CEOs in the industry. Furthermore, John Hairston directly owns US$4.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$1.2m	US$1.1m	21%
Other	US$4.4m	US$5.6m	79%
Total Compensation	US$5.6m	US$6.7m	100%

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. In Hancock Whitney's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Hancock Whitney Corporation's Growth Numbers

Hancock Whitney Corporation has seen its earnings per share (EPS) increase by 28% a year over the past three years. In the last year, its revenue is down 6.0%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Hancock Whitney Corporation Been A Good Investment?

Hancock Whitney Corporation has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Hancock Whitney that investors should think about before committing capital to this stock.

Important note: Hancock Whitney is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.