Chris Holmes became the CEO of FB Financial Corporation (NYSE:FBK) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
How Does Chris Holmes's Compensation Compare With Similar Sized Companies?
According to our data, FB Financial Corporation has a market capitalization of US$1.2b, and paid its CEO total annual compensation worth US$2.1m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$433k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
So Chris Holmes receives a similar amount to the median CEO pay, amongst 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, below, how CEO compensation at FB Financial has changed over time.
Is FB Financial Corporation Growing?
Over the last three years FB Financial Corporation has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). In the last year, its revenue is down 1.0%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has FB Financial Corporation Been A Good Investment?
Most shareholders would probably be pleased with FB Financial Corporation for providing a total return of 86% 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.
Remuneration for Chris Holmes is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at FB Financial.
If you want to buy a stock that is better than FB Financial, this free list of high return, low debt companies is a great place to look.
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