Jerry Ocheltree has been the CEO of Carolina Trust BancShares Inc (NASDAQ:CART) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Jerry Ocheltree’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Carolina Trust BancShares Inc has a market cap of US$57m, and is paying total annual CEO compensation of US$442k. Notably, that’s an increase of 13% over the year before. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$293k.
As you can see, Jerry Ocheltree is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Carolina Trust BancShares Inc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Carolina Trust BancShares has changed from year to year.
Is Carolina Trust BancShares Inc Growing?
Carolina Trust BancShares Inc has reduced its earnings per share by an average of 44% a year, over the last three years. It achieved revenue growth of 20% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Carolina Trust BancShares Inc Been A Good Investment?
Carolina Trust BancShares Inc has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount Carolina Trust BancShares Inc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
And shareholder returns are decent but not great. So you may want to delve deeper, because we don’t think the CEO pay is too low.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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 firstname.lastname@example.org.