There Could Be A Chance Bank of South Carolina Corporation's (NASDAQ:BKSC) CEO Will Have Their Compensation Increased
The decent performance at Bank of South Carolina Corporation (NASDAQ:BKSC) recently will please most shareholders as they go into the AGM coming up on 13 April 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
Check out our latest analysis for Bank of South Carolina
Comparing Bank of South Carolina Corporation's CEO Compensation With the industry
At the time of writing, our data shows that Bank of South Carolina Corporation has a market capitalization of US$121m, and reported total annual CEO compensation of US$347k for the year to December 2020. That's just a smallish increase of 3.8% on last year. In particular, the salary of US$301.3k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$566k. Accordingly, Bank of South Carolina pays its CEO under the industry median. Moreover, Fleetwood Hassell also holds US$3.2m worth of Bank of South Carolina stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$301k | US$286k | 87% |
Other | US$46k | US$48k | 13% |
Total Compensation | US$347k | US$334k | 100% |
On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. Bank of South Carolina pays out 87% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Bank of South Carolina Corporation's Growth Numbers
Over the past three years, Bank of South Carolina Corporation has seen its earnings per share (EPS) grow by 9.3% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bank of South Carolina Corporation Been A Good Investment?
Most shareholders would probably be pleased with Bank of South Carolina Corporation for providing a total return of 39% 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.
In Summary...
Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is a bit concerning) in Bank of South Carolina we think you should know about.
Switching gears from Bank of South Carolina, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. 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.
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