Shareholders Will Probably Hold Off On Increasing F.N.B. Corporation's (NYSE:FNB) CEO Compensation For The Time Being

Under the guidance of CEO Vince Delie, F.N.B. Corporation (NYSE:FNB) has performed reasonably well recently. As shareholders go into the upcoming AGM on 11 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for F.N.B

How Does Total Compensation For Vince Delie Compare With Other Companies In The Industry?

At the time of writing, our data shows that F.N.B. Corporation has a market capitalization of US$4.1b, and reported total annual CEO compensation of US$6.3m for the year to December 2020. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.

For comparison, other companies in the same industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$3.4m. Accordingly, our analysis reveals that F.N.B. Corporation pays Vince Delie north of the industry median. Moreover, Vince Delie also holds US$11m worth of F.N.B stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$1.2m	US$1.1m	18%
Other	US$5.2m	US$5.3m	82%
Total Compensation	US$6.3m	US$6.4m	100%

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% 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 total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

F.N.B. Corporation's Growth

F.N.B. Corporation's earnings per share (EPS) grew 8.3% per year over the last three years. In the last year, its revenue is up 1.1%.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. 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?

F.N.B. Corporation has served shareholders reasonably well, with a total return of 16% over three years. 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for F.N.B (1 shouldn't be ignored!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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