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In 2012 Mike Price was appointed CEO of First Commonwealth Financial Corporation (NYSE:FCF). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Mike Price’s Compensation Compare With Similar Sized Companies?
According to our data, First Commonwealth Financial Corporation has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$1.0m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$459k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.4m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less 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, 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 19% each year (using a line of best fit). It achieved revenue growth of 8.3% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
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 75% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like First Commonwealth Financial Corporation pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Mike Price deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling First Commonwealth Financial (free visualization of insider trades).
If you want to buy a stock that is better than First Commonwealth Financial, this free list of high return, low debt companies is a great place to look.
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 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. On rare occasion, data errors may occur. Thank you for reading.