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What Did BancFirst Corporation's (NASDAQ:BANF) CEO Take Home Last Year?

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David Harlow became the CEO of BancFirst Corporation (NASDAQ:BANF) in 2017. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for BancFirst

How Does David Harlow's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that BancFirst Corporation has a market cap of US$1.2b, and reported total annual CEO compensation of US$711k for the year to December 2019. That's a fairly small increase of 7.2% on year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$535k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$3.2m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 43% of total compensation represents salary and 57% is other remuneration. BancFirst pays out 75% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.

Most shareholders would consider it a positive that David Harlow takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at BancFirst has changed from year to year.

NasdaqGS:BANF CEO Compensation May 25th 2020
NasdaqGS:BANF CEO Compensation May 25th 2020

Is BancFirst Corporation Growing?

On average over the last three years, BancFirst Corporation has seen earnings per share (EPS) move in a favourable direction by 18% each year (using a line of best fit). Its revenue is up 4.4% over last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has BancFirst Corporation Been A Good Investment?

Given the total loss of 20% over three years, many shareholders in BancFirst Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

It looks like BancFirst Corporation pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration David Harlow receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. On another note, BancFirst has 2 warning signs (and 1 which is potentially serious) we think you should know about.

Important note: BancFirst 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.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. 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. Thank you for reading.