Yahoo Finance We Think The Compensation For Hancock Whitney Corporation's (NASDAQ:HWC) CEO Looks About Right
Key Insights
Hancock Whitney's Annual General Meeting to take place on 24th of April
Salary of US$1.17m is part of CEO John Hairston's total remuneration
The overall pay is comparable to the industry average
Hancock Whitney's total shareholder return over the past three years was 5.8% while its EPS grew by 30% over the past three years
Under the guidance of CEO John Hairston, Hancock Whitney Corporation (NASDAQ:HWC) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24th of April. Here is our take on why we think the CEO compensation looks appropriate.
See our latest analysis for Hancock Whitney
How Does Total Compensation For John Hairston Compare With Other Companies In The Industry?
At the time of writing, our data shows that Hancock Whitney Corporation has a market capitalization of US$3.7b, and reported total annual CEO compensation of US$5.6m for the year to December 2023. We note that's a decrease of 16% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.2m.
For comparison, other companies in the American Banks industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$4.7m. From this we gather that John Hairston is paid around the median for CEOs in the industry. Moreover, John Hairston also holds US$4.4m worth of Hancock Whitney stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.2m | US$1.1m | 21% |
Other | US$4.4m | US$5.6m | 79% |
Total Compensation | US$5.6m | US$6.7m | 100% |
On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. Hancock Whitney pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Hancock Whitney Corporation's Growth
Hancock Whitney Corporation's earnings per share (EPS) grew 30% per year over the last three years. In the last year, its revenue is down 8.9%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Hancock Whitney Corporation Been A Good Investment?
With a total shareholder return of 5.8% over three years, Hancock Whitney Corporation has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Hancock Whitney that investors should be aware of in a dynamic business environment.
Important note: Hancock Whitney 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
