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Mike Price became the CEO of First Commonwealth Financial Corporation (NYSE:FCF) in 2012. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mike Price’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that First Commonwealth Financial Corporation has a market cap of US$1.3b, and is paying total annual CEO compensation of US$1.2m. (This figure is for the year to December 2018). We note that’s an increase of 17% above last year. We think total compensation is more important but we note that the CEO salary is lower, at US$472k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
A first glance this seems like a real positive for shareholders, since Mike Price is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at First Commonwealth Financial has changed over time.
Is First Commonwealth Financial Corporation Growing?
On average over the last three years, First Commonwealth Financial Corporation has grown earnings per share (EPS) by 22% each year (using a line of best fit). Its revenue is up 6.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has First Commonwealth Financial Corporation Been A Good Investment?
Most shareholders would probably be pleased with First Commonwealth Financial Corporation for providing a total return of 51% 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.
First Commonwealth Financial Corporation is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Mike Price deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Commonwealth Financial.
Important note: First Commonwealth Financial may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.