What Did Citizens Financial Group's (NYSE:CFG) CEO Take Home Last Year?
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This article will reflect on the compensation paid to Bruce Van Saun who has served as CEO of Citizens Financial Group, Inc. (NYSE:CFG) since 2013. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Citizens Financial Group.
See our latest analysis for Citizens Financial Group
Comparing Citizens Financial Group, Inc.'s CEO Compensation With the industry
Our data indicates that Citizens Financial Group, Inc. has a market capitalization of US$11b, and total annual CEO compensation was reported as US$9.9m for the year to December 2019. That's a fairly small increase of 5.2% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.5m.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$13m. So it looks like Citizens Financial Group compensates Bruce Van Saun in line with the median for the industry. What's more, Bruce Van Saun holds US$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$1.5m | US$1.5m | 15% |
| Other | US$8.4m | US$7.9m | 85% |
| Total Compensation | US$9.9m | US$9.4m | 100% |
On an industry level, roughly 43% of total compensation represents salary and 57% is other remuneration. It's interesting to note that Citizens Financial Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Citizens Financial Group, Inc.'s Growth Numbers
Citizens Financial Group, Inc.'s earnings per share (EPS) grew 11% per year over the last three years. In the last year, its revenue is down 4.6%.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Citizens Financial Group, Inc. Been A Good Investment?
Since shareholders would have lost about 19% over three years, some Citizens Financial Group, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.