Key Insights

• PNC Financial Services Group's Annual General Meeting to take place on 24th of April
• CEO Bill Demchak's total compensation includes salary of US$1.20m
• Total compensation is 80% above industry average
• PNC Financial Services Group's EPS grew by 11% over the past three years while total shareholder loss over the past three years was 4.8%

In the past three years, shareholders of The PNC Financial Services Group, Inc. (NYSE:PNC) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 24th of April could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for PNC Financial Services Group

Comparing The PNC Financial Services Group, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that The PNC Financial Services Group, Inc. has a market capitalization of US$59b, and reported total annual CEO compensation of US$20m for the year to December 2023. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.

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. This suggests that Bill Demchak is paid more than the median for the industry. Furthermore, Bill Demchak directly owns US$85m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. PNC Financial Services 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.

The PNC Financial Services Group, Inc.'s Growth

The PNC Financial Services Group, Inc.'s earnings per share (EPS) grew 11% per year over the last three years. Its revenue is down 3.5% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 The PNC Financial Services Group, Inc. Been A Good Investment?

Since shareholders would have lost about 4.8% over three years, some The PNC Financial Services Group, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PNC Financial Services Group.

Important note: PNC Financial Services Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.