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In 2014 Todd Clossin was appointed CEO of WesBanco, Inc. (NASDAQ:WSBC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Todd Clossin’s Compensation Compare With Similar Sized Companies?
According to our data, WesBanco, Inc. has a market capitalization of US$2.1b, and pays its CEO total annual compensation worth US$1.9m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$812k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$3.9m.
Most shareholders would consider it a positive that Todd Clossin takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at WesBanco, below.
Is WesBanco, Inc. Growing?
On average over the last three years, WesBanco, Inc. has grown earnings per share (EPS) by 8.0% each year (using a line of best fit). In the last year, its revenue is up 25%.
It’s great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn’t shabby. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.
Has WesBanco, Inc. Been A Good Investment?
Most shareholders would probably be pleased with WesBanco, Inc. for providing a total return of 35% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
It looks like WesBanco, Inc. pays its CEO less than similar sized companies.
Todd Clossin receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at WesBanco.
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 firstname.lastname@example.org. 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.