What We Learned About WesBanco's (NASDAQ:WSBC) CEO Pay
Todd Clossin has been the CEO of WesBanco, Inc. (NASDAQ:WSBC) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether WesBanco pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for WesBanco
How Does Total Compensation For Todd Clossin Compare With Other Companies In The Industry?
Our data indicates that WesBanco, Inc. has a market capitalization of US$1.4b, and total annual CEO compensation was reported as US$2.3m for the year to December 2019. That's a notable increase of 20% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$900k.
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$3.4m. Accordingly, WesBanco pays its CEO under the industry median. Moreover, Todd Clossin also holds US$1.9m worth of WesBanco stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$900k | US$812k | 39% |
Other | US$1.4m | US$1.1m | 61% |
Total Compensation | US$2.3m | US$1.9m | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Our data reveals that WesBanco allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
WesBanco, Inc.'s Growth
WesBanco, Inc. has seen its earnings per share (EPS) increase by 3.5% a year over the past three years. It achieved revenue growth of 6.8% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has WesBanco, Inc. Been A Good Investment?
With a three year total loss of 39% for the shareholders, WesBanco, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we noted earlier, WesBanco pays its CEO lower than the norm for similar-sized companies belonging to the same industry. But the company isn't growing and total shareholder returns have been disappointing. So while we don't think, Todd is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for WesBanco that you should be aware of before investing.
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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