Yahoo Finance How Much Did Atlantic Union Bankshares' (NASDAQ:AUB) CEO Pocket Last Year?
Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
John Asbury has been the CEO of Atlantic Union Bankshares Corporation (NASDAQ:AUB) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Atlantic Union Bankshares
Comparing Atlantic Union Bankshares Corporation's CEO Compensation With the industry
At the time of writing, our data shows that Atlantic Union Bankshares Corporation has a market capitalization of US$1.7b, and reported total annual CEO compensation of US$2.5m for the year to December 2019. That's a fairly small increase of 6.4% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$780k.
For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.6m. This suggests that John Asbury is paid below the industry median. What's more, John Asbury holds US$2.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$780k | US$674k | 31% |
Other | US$1.7m | US$1.7m | 69% |
Total Compensation | US$2.5m | US$2.3m | 100% |
On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that Atlantic Union Bankshares 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.
Atlantic Union Bankshares Corporation's Growth
Atlantic Union Bankshares Corporation's earnings per share (EPS) grew 3.8% per year over the last three years. Its revenue is up 15% over the last year.
We would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Atlantic Union Bankshares Corporation Been A Good Investment?
Since shareholders would have lost about 30% over three years, some Atlantic Union Bankshares Corporation investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As we touched on above, Atlantic Union Bankshares Corporation is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company isn't growing and total shareholder returns have been disappointing. We're not critical of the remuneration John receives, but it would be good to see improved returns to shareholders before compensation grows too much.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Atlantic Union Bankshares that investors should look into moving forward.
Important note: Atlantic Union Bankshares is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
