Shareholders Will Likely Find First Commonwealth Financial Corporation's (NYSE:FCF) CEO Compensation Acceptable

Key Insights

• First Commonwealth Financial will host its Annual General Meeting on 29th of April
• Salary of US$683.3k is part of CEO Mike Price's total remuneration
• Total compensation is 49% below industry average
• Over the past three years, First Commonwealth Financial's EPS fell by 0.9% and over the past three years, the total shareholder return was 19%

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The performance at First Commonwealth Financial Corporation (NYSE:FCF) has been rather lacklustre of late and shareholders may be wondering what CEO Mike Price is planning to do about this. At the next AGM coming up on 29th of April, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for First Commonwealth Financial

How Does Total Compensation For Mike Price Compare With Other Companies In The Industry?

Our data indicates that First Commonwealth Financial Corporation has a market capitalization of US$1.5b, and total annual CEO compensation was reported as US$1.7m for the year to December 2024. We note that's an increase of 20% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$683k.

For comparison, other companies in the American Banks industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.2m. This suggests that Mike Price is paid below the industry median. Moreover, Mike Price also holds US$5.5m worth of First Commonwealth Financial stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 44% of total compensation represents salary and 56% is other remuneration. First Commonwealth Financial is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 First Commonwealth Financial Corporation's Growth Numbers

First Commonwealth Financial Corporation saw earnings per share stay pretty flat over the last three years. It saw its revenue drop 4.0% over the last year.

The lack of EPS growth is certainly uninspiring. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has First Commonwealth Financial Corporation Been A Good Investment?

With a total shareholder return of 19% over three years, First Commonwealth Financial Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

While it's true that shareholders have seen decent returns, it's hard to overlook the lack of earnings growth and this makes us wonder if the current returns can continue. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Commonwealth Financial.

Switching gears from First Commonwealth Financial, 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. 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.