Yahoo Finance Here's Why Cullen/Frost Bankers, Inc.'s (NYSE:CFR) CEO Is Unlikely to Expect A Pay Rise This Year
Key Insights
Cullen/Frost Bankers will host its Annual General Meeting on 24th of April
Salary of US$1.20m is part of CEO Phil Green's total remuneration
The total compensation is similar to the average for the industry
Cullen/Frost Bankers' EPS grew by 21% over the past three years while total shareholder return over the past three years was 3.3%
CEO Phil Green has done a decent job of delivering relatively good performance at Cullen/Frost Bankers, Inc. (NYSE:CFR) recently. 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 24th of April. Here is our take on why we think the CEO compensation looks appropriate.
View our latest analysis for Cullen/Frost Bankers
How Does Total Compensation For Phil Green Compare With Other Companies In The Industry?
At the time of writing, our data shows that Cullen/Frost Bankers, Inc. has a market capitalization of US$6.9b, and reported total annual CEO compensation of US$6.5m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.
In comparison with other companies in the American Banks industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$5.8m. So it looks like Cullen/Frost Bankers compensates Phil Green in line with the median for the industry. What's more, Phil Green holds US$15m 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$1.1m | 18% |
Other | US$5.3m | US$5.3m | 82% |
Total Compensation | US$6.5m | US$6.4m | 100% |
Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. In Cullen/Frost Bankers' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Cullen/Frost Bankers, Inc.'s Growth
Over the past three years, Cullen/Frost Bankers, Inc. has seen its earnings per share (EPS) grow by 21% per year. It achieved revenue growth of 15% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Cullen/Frost Bankers, Inc. Been A Good Investment?
Cullen/Frost Bankers, Inc. has generated a total shareholder return of 3.3% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
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 Cullen/Frost Bankers that investors should think about before committing capital to this stock.
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. 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.
