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How Should Investors Feel About BB&T Corporation’s (NYSE:BBT) CEO Pay?

Alexis Guardo

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Kelly King has been the CEO of BB&T Corporation ( NYSE:BBT ) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for BB&T

How Does Kelly King’s Compensation Compare With Similar Sized Companies?

According to our data, BB&T Corporation has a market capitalization of US$39b, and pays its CEO total annual compensation worth US$13m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$1.1m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).

So Kelly King receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at BB&T has changed over time.

NYSE:BBT CEO Compensation February 12th 19

Is BB&T Corporation Growing?

On average over the last three years, BB&T Corporation has grown earnings per share (EPS) by 14% each year (using a line of best fit). Its revenue is up 2.1% over last year.

This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings .

Has BB&T Corporation Been A Good Investment?

Boasting a total shareholder return of 74% over three years, BB&T Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Kelly King is paid around what is normal the leaders of larger companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at BB&T.

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.

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 editorial-team@simplywallst.com .