Is Pinnacle Financial Partners Inc’s (NASDAQ:PNFP) CEO Paid Enough To Stay Motivated?

Michael Turner became the CEO of Pinnacle Financial Partners Inc (NASDAQ:PNFP) in 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Pinnacle Financial Partners

How Does Michael Turner’s Compensation Compare With Similar Sized Companies?

According to our data, Pinnacle Financial Partners Inc has a market capitalization of US$4.1b, and pays its CEO total annual compensation worth US$3m. Notably, that’s an increase of 27% over the year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5m.

So Michael Turner receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Pinnacle Financial Partners, below.

NasdaqGS:PNFP CEO Compensation November 9th 18
NasdaqGS:PNFP CEO Compensation November 9th 18

Is Pinnacle Financial Partners Inc Growing?

Pinnacle Financial Partners Inc has increased its earnings per share (EPS) by an average of 11% a year, over the last three years Its revenue is up 51% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.

Has Pinnacle Financial Partners Inc Been A Good Investment?

With a three year total loss of 3.0%, Pinnacle Financial Partners Inc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Michael Turner is paid around what is normal the leaders of comparable size companies.

We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. This article has given you an idea about how to analyse CEO remuneration, but it’s important to look at other leaders in the company, too. So it makes sense to check how long the Board of Directors has been in place.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.com.