Ed Wehmer became the CEO of Wintrust Financial Corporation (NASDAQ:WTFC) in 1998. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ed Wehmer’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Wintrust Financial Corporation has a market cap of US$4.0b, and is paying total annual CEO compensation of US$4.2m. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.1m. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$4.7m.
So Ed Wehmer 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, below, how CEO compensation at Wintrust Financial has changed over time.
Is Wintrust Financial Corporation Growing?
Over the last three years Wintrust Financial Corporation has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Wintrust Financial Corporation Been A Good Investment?
Most shareholders would probably be pleased with Wintrust Financial Corporation for providing a total return of 67% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Ed Wehmer is close enough to the median pay for a CEO of a similar sized company .
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 Wintrust Financial shares with their own money (free access).
If you want to buy a stock that is better than Wintrust Financial, this free list of high return, low debt companies is a great place to look.
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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.