Yahoo Finance How Should Investors React To BOK Financial Corporation's (NASDAQ:BOKF) CEO Pay?
In 2014 Steve Bradshaw was appointed CEO of BOK Financial Corporation (NASDAQ:BOKF). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for BOK Financial
How Does Steve Bradshaw's Compensation Compare With Similar Sized Companies?
According to our data, BOK Financial Corporation has a market capitalization of US$6.0b, and paid its CEO total annual compensation worth US$4.8m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$991k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.7m.
So Steve Bradshaw receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at BOK Financial has changed from year to year.
Is BOK Financial Corporation Growing?
On average over the last three years, BOK Financial Corporation has grown earnings per share (EPS) by 22% each year (using a line of best fit). In the last year, its revenue is up 11%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has BOK Financial Corporation Been A Good Investment?
BOK Financial Corporation has not done too badly by shareholders, with a total return of 8.3%, 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.
In Summary...
Remuneration for Steve Bradshaw is close enough to the median pay for a CEO of a similar sized company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if BOK Financial insiders are buying or selling shares.
Important note: BOK Financial may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
