Kessel Stelling became the CEO of Synovus Financial Corp. (NYSE:SNV) in 2010, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Synovus Financial.
How Does Total Compensation For Kessel Stelling Compare With Other Companies In The Industry?
According to our data, Synovus Financial Corp. has a market capitalization of US$3.4b, and paid its CEO total annual compensation worth US$5.2m over the year to December 2019. That's a notable decrease of 12% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
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$4.8m. This suggests that Synovus Financial remunerates its CEO largely in line with the industry average. Furthermore, Kessel Stelling directly owns US$7.4m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Synovus Financial pays a modest slice of remuneration through salary, as compared 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.
Synovus Financial Corp.'s Growth
Synovus Financial Corp.'s earnings per share (EPS) grew 5.5% per year over the last three years. Its revenue is up 1.9% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Synovus Financial Corp. Been A Good Investment?
With a three year total loss of 42% for the shareholders, Synovus Financial Corp. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we noted earlier, Synovus Financial pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, Synovus Financial is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Synovus Financial.
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.
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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