Shareholders May Be More Conservative With F.N.B. Corporation's (NYSE:FNB) CEO Compensation For Now

Key Insights

• F.N.B to hold its Annual General Meeting on 8th of May
• Total pay for CEO Vince Delie includes US$1.19m salary
• Total compensation is 54% above industry average
• F.N.B's total shareholder return over the past three years was 14% while its EPS grew by 7.5% over the past three years

Performance at F.N.B. Corporation (NYSE:FNB) has been reasonably good and CEO Vince Delie has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 8th of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for F.N.B

Comparing F.N.B. Corporation's CEO Compensation With The Industry

According to our data, F.N.B. Corporation has a market capitalization of US$4.8b, and paid its CEO total annual compensation worth US$7.4m over the year to December 2023. That's a fairly small increase of 6.6% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.2m.

In comparison with other companies in the American Banks industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$4.8m. Accordingly, our analysis reveals that F.N.B. Corporation pays Vince Delie north of the industry median. What's more, Vince Delie holds US$25m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.2m	US$1.2m	16%
Other	US$6.2m	US$5.7m	84%
Total Compensation	US$7.4m	US$6.9m	100%

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that F.N.B allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at F.N.B. Corporation's Growth Numbers

F.N.B. Corporation's earnings per share (EPS) grew 7.5% per year over the last three years. Revenue was pretty flat on last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 F.N.B. Corporation Been A Good Investment?

With a total shareholder return of 14% over three years, F.N.B. Corporation shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

So you may want to check if insiders are buying F.N.B shares with their own money (free access).

Switching gears from F.N.B, 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.