A Look At Bank of Hawaii's (NYSE:BOH) CEO Remuneration

Peter Ho has been the CEO of Bank of Hawaii Corporation (NYSE:BOH) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Bank of Hawaii

Comparing Bank of Hawaii Corporation's CEO Compensation With the industry

At the time of writing, our data shows that Bank of Hawaii Corporation has a market capitalization of US$2.1b, and reported total annual CEO compensation of US$5.3m for the year to December 2019. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$818k.

For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.6m. Hence, we can conclude that Peter Ho is remunerated higher than the industry median. What's more, Peter Ho holds US$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Bank of Hawaii sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Bank of Hawaii Corporation's Growth Numbers

Bank of Hawaii Corporation has seen its earnings per share (EPS) increase by 2.3% a year over the past three years. Its revenue is down 6.7% over the previous year.

We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Bank of Hawaii Corporation Been A Good Investment?

Since shareholders would have lost about 28% over three years, some Bank of Hawaii Corporation investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Bank of Hawaii pays its CEO higher than the norm for similar-sized companies belonging to the same industry. The growth in the business has been uninspiring, but the shareholder returns for Bank of Hawaii have arguably been worse, over the last three years. This doesn't look good when you see that Peter is earning more than the industry median. Taking all this into account, it could be hard to get shareholder support for giving Peter a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Bank of Hawaii that investors should look into moving forward.

Switching gears from Bank of Hawaii, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. 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.
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