Shareholders May Be Wary Of Increasing Bank of Hawaii Corporation's (NYSE:BOH) CEO Compensation Package
Key Insights
- Bank of Hawaii to hold its Annual General Meeting on 25th of April
- Total pay for CEO Peter Ho includes US$885.8k salary
- The overall pay is comparable to the industry average
- Over the past three years, Bank of Hawaii's EPS fell by 18% and over the past three years, the total loss to shareholders 8.0%
Bank of Hawaii Corporation (NYSE:BOH) has not performed well recently and CEO Peter Ho will probably need to up their game. At the upcoming AGM on 25th of April, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for Bank of Hawaii
How Does Total Compensation For Peter Ho Compare With Other Companies In The Industry?
According to our data, Bank of Hawaii Corporation has a market capitalization of US$2.6b, and paid its CEO total annual compensation worth US$4.3m over the year to December 2024. That's a slight decrease of 7.4% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$886k.
On comparing similar companies from the American Banks industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$4.7m. From this we gather that Peter Ho is paid around the median for CEOs in the industry. Moreover, Peter Ho also holds US$18m worth of Bank of Hawaii stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$886k | US$878k | 21% |
| Other | US$3.4m | US$3.7m | 79% |
| Total Compensation | US$4.3m | US$4.6m | 100% |
Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. 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
Over the last three years, Bank of Hawaii Corporation has shrunk its earnings per share by 18% per year. Its revenue is down 5.5% over the previous year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 8.0% over three years, some Bank of Hawaii Corporation investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
So you may want to check if insiders are buying Bank of Hawaii shares with their own money (free access).
Important note: Bank of Hawaii 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.
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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.