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Is Carolina Trust BancShares, Inc.'s (NASDAQ:CART) CEO Paid At A Competitive Rate?

Simply Wall St

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Jerry Ocheltree became the CEO of Carolina Trust BancShares, Inc. (NASDAQ:CART) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Carolina Trust BancShares

How Does Jerry Ocheltree's Compensation Compare With Similar Sized Companies?

Our data indicates that Carolina Trust BancShares, Inc. is worth US$71m, and total annual CEO compensation is US$508k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$285k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$471k.

So Jerry Ocheltree is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Carolina Trust BancShares, below.

NasdaqCM:CART CEO Compensation, July 15th 2019

Is Carolina Trust BancShares, Inc. Growing?

Over the last three years Carolina Trust BancShares, Inc. has grown its earnings per share (EPS) by an average of 20% per year (using a line of best fit). In the last year, its revenue is up 32%.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more 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 26% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Jerry Ocheltree is paid around the same as most CEOs of similar size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Carolina Trust BancShares shares (free trial).

Important note: Carolina Trust BancShares may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.