What Did Summit State Bank's (NASDAQ:SSBI) CEO Take Home Last Year?
In 2016, Jim Brush was appointed CEO of Summit State Bank (NASDAQ:SSBI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Summit State Bank
How Does Jim Brush's Compensation Compare With Similar Sized Companies?
According to our data, Summit State Bank has a market capitalization of US$51m, and paid its CEO total annual compensation worth US$381k over the year to December 2019. That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$300k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$607k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Summit State Bank stands. Speaking on an industry level, we can see that nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Summit State Bank pays out 79% 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 Jim Brush takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance. You can see, below, how CEO compensation at Summit State Bank has changed over time.
Is Summit State Bank Growing?
On average over the last three years, Summit State Bank has seen earnings per share (EPS) move in a favourable direction by 13% each year (using a line of best fit). In the last year, its revenue is up 6.6%.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Summit State Bank Been A Good Investment?
Given the total loss of 30% over three years, many shareholders in Summit State Bank are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It appears that Summit State Bank remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we would not say that Jim Brush is generously paid, it would be good to see an improvement in business performance before too an increase in pay. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. Shifting gears from CEO pay for a second, we've spotted 2 warning signs for Summit State Bank you should be aware of, and 1 of them is a bit unpleasant.
If you want to buy a stock that is better than Summit State Bank, this free list of high return, low debt companies is a great place to look.
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.
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