Matt Wagner became the CEO of PacWest Bancorp ( NASDAQ:PACW ) in 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
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How Does Matt Wagner’s Compensation Compare With Similar Sized Companies?
According to our data, PacWest Bancorp has a market capitalization of US$4.2b, and pays its CEO total annual compensation worth US$5.6m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$979k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5.1m.
That means Matt Wagner receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at PacWest Bancorp, below.
Is PacWest Bancorp Growing?
PacWest Bancorp has increased its earnings per share (EPS) by an average of 6.3% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 12%.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.
It could be important to check this free visual depiction of what analysts expect for the future .
Has PacWest Bancorp Been A Good Investment?
PacWest Bancorp has served shareholders reasonably well, with a total return of 19% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
Matt Wagner is paid around what is normal the leaders of comparable size companies.
The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PacWest Bancorp.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com .