Here's What We Learned About The CEO Pay At Associated Banc-Corp (NYSE:ASB)

Phil Flynn has been the CEO of Associated Banc-Corp (NYSE:ASB) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Associated Banc-Corp.

View our latest analysis for Associated Banc-Corp

How Does Total Compensation For Phil Flynn Compare With Other Companies In The Industry?

Our data indicates that Associated Banc-Corp has a market capitalization of US$2.2b, and total annual CEO compensation was reported as US$5.1m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.

On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$3.1m. This suggests that Phil Flynn is paid more than the median for the industry. What's more, Phil Flynn holds US$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Associated Banc-Corp sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Associated Banc-Corp's Growth

Associated Banc-Corp has seen its earnings per share (EPS) increase by 15% a year over the past three years. Its revenue is up 2.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Associated Banc-Corp Been A Good Investment?

Since shareholders would have lost about 36% over three years, some Associated Banc-Corp investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, Associated Banc-Corp is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong, but it's disappointing to see negative shareholder returns over the same period. Considering overall performance, we can't say Phil is underpaid, in fact compensation is definitely on the higher side.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Associated Banc-Corp (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

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