Shareholders May Be More Conservative With Regions Financial Corporation's (NYSE:RF) CEO Compensation For Now

Performance at Regions Financial Corporation (NYSE:RF) has been reasonably good and CEO John Turner has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21 April 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Regions Financial

How Does Total Compensation For John Turner Compare With Other Companies In The Industry?

Our data indicates that Regions Financial Corporation has a market capitalization of US$20b, and total annual CEO compensation was reported as US$14m for the year to December 2020. That's just a smallish increase of 5.5% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$994k.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$8.9m. Hence, we can conclude that John Turner is remunerated higher than the industry median. Moreover, John Turner also holds US$8.5m worth of Regions Financial 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$994k	US$969k	7%
Other	US$13m	US$12m	93%
Total Compensation	US$14m	US$13m	100%

On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. In Regions Financial's case, non-salary compensation represents a greater slice of total remuneration, 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 Regions Financial Corporation's Growth Numbers

Regions Financial Corporation has seen its earnings per share (EPS) increase by 1.4% a year over the past three years. Its revenue is down 9.4% over the previous year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Regions Financial Corporation Been A Good Investment?

Regions Financial Corporation has generated a total shareholder return of 33% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same 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, 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Regions Financial that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. 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.
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