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Bank of Hawaii CEO's Base Salary Up 3%, Gets Incentive Bonus

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Bank of Hawaii Corporation (BOH - Free Report) chairman, president and chief executive officer (CEO) — Peter Ho — has received about 3% pay hike in his base salary for 2019, along with $2-million cash incentive award approval, per the U.S. Securities and Exchange Commission. The new base salary of $825,000 would be effective from April, up from $800,000 in 2018 and $780,000 in 2017.

The CEO’s annual salary was $4.87 million in 2017 though total compensation package for 2018 was not disclosed. Ho also received 26,542 shares in restricted stock grants for 2018.

The pay hike came on the heels of Bank of Hawaii’s strong performance in 2018. The bank posted $219.6 million in net income in 2018, an increase of 18.9% from $184.7 million the year before. Further, total revenues increased 3.2% year over year to $662.3 million.

Notably, in October 2018, the company hiked its quarterly stock dividend by 3.3%. Also, since the beginning of its share-repurchase program in July 2001, the company has repurchased a total of 55.3 million shares of common stock for a total cost of $2.2 billion as of Dec 31, 2018. Furthermore, the board of directors recently increased the authorization by an additional $130 million.

Though Bank of Hawaii was steadily active in deploying capital in 2018, investors’ concerns prevailed on certain macroeconomic factors. Therefore, the company's share price depreciated roughly 19.3% in 2018, following a slight decline in 2017.

Among other banks, Bank of America Corp.’s (BAC - Free Report) chairman as well as CEO — Brian Moynihan — is expected to receive $27 million as total compensation for 2018, which reflects a rise of 15% year over year. Among others, JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) have also increased their CEOs’ compensation.

Notably, Bank of Hawaii has improved on capital return to shareholders since the financial crisis. Ho has also been adept in strategically evaluating the various facets of the bank’s major businesses. Besides exhibiting a solid liquidity position, the company is well positioned to maintain its increasing revenue trend, going forward.

We believe Ho’s pay hike will prove to be a major morale booster. Bank of Hawaii’s fundamentals remain highly promising with a diverse business model and a healthy balance sheet.

Bank of Hawaii currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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