Yahoo Finance We Think OFG Bancorp's (NYSE:OFG) CEO Compensation Looks Fair
Key Insights
OFG Bancorp's Annual General Meeting to take place on 8th of May
Total pay for CEO Jos Fernandez includes US$935.0k salary
Total compensation is similar to the industry average
Over the past three years, OFG Bancorp's EPS grew by 28% and over the past three years, the total shareholder return was 63%
The performance at OFG Bancorp (NYSE:OFG) has been quite strong recently and CEO Jos Fernandez has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 8th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
View our latest analysis for OFG Bancorp
How Does Total Compensation For Jos Fernandez Compare With Other Companies In The Industry?
Our data indicates that OFG Bancorp has a market capitalization of US$1.7b, and total annual CEO compensation was reported as US$3.5m for the year to December 2023. That's a notable increase of 14% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$935k.
On examining similar-sized companies in the American Banks industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$3.0m. From this we gather that Jos Fernandez is paid around the median for CEOs in the industry. Furthermore, Jos Fernandez directly owns US$14m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$935k | US$935k | 27% |
Other | US$2.6m | US$2.1m | 73% |
Total Compensation | US$3.5m | US$3.1m | 100% |
Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. OFG Bancorp pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
OFG Bancorp's Growth
Over the past three years, OFG Bancorp has seen its earnings per share (EPS) grow by 28% per year. It achieved revenue growth of 3.8% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has OFG Bancorp Been A Good Investment?
Most shareholders would probably be pleased with OFG Bancorp for providing a total return of 63% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in OFG Bancorp we think you should know about.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
