Yahoo Finance It Looks Like Citizens Financial Group, Inc.'s (NYSE:CFG) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Citizens Financial Group's Annual General Meeting to take place on 25th of April
Total pay for CEO Bruce Van Saun includes US$1.49m salary
The total compensation is similar to the average for the industry
Citizens Financial Group's EPS declined by 7.3% over the past three years while total shareholder loss over the past three years was 13%
The results at Citizens Financial Group, Inc. (NYSE:CFG) have been quite disappointing recently and CEO Bruce Van Saun bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of April. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
View our latest analysis for Citizens Financial Group
Comparing Citizens Financial Group, Inc.'s CEO Compensation With The Industry
According to our data, Citizens Financial Group, Inc. has a market capitalization of US$15b, and paid its CEO total annual compensation worth US$11m over the year to December 2023. That's a slight decrease of 5.4% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.5m.
For comparison, other companies in the American Banks industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$11m. So it looks like Citizens Financial Group compensates Bruce Van Saun in line with the median for the industry. Moreover, Bruce Van Saun also holds US$38m worth of Citizens Financial Group 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$1.5m | US$1.5m | 13% |
Other | US$9.6m | US$10m | 87% |
Total Compensation | US$11m | US$12m | 100% |
Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. Citizens Financial Group 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.
A Look at Citizens Financial Group, Inc.'s Growth Numbers
Over the last three years, Citizens Financial Group, Inc. has shrunk its earnings per share by 7.3% per year. Its revenue is down 6.4% over the previous year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Citizens Financial Group, Inc. Been A Good Investment?
With a three year total loss of 13% for the shareholders, Citizens Financial Group, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Citizens Financial Group that investors should think about before committing capital to this 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.
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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.
