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We Discuss Why The CEO Of Triumph Bancorp, Inc. (NASDAQ:TBK) Is Due For A Pay Rise

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·3 min read
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The impressive results at Triumph Bancorp, Inc. (NASDAQ:TBK) recently will be great news for shareholders. At the upcoming AGM on 27 April 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Triumph Bancorp

Comparing Triumph Bancorp, Inc.'s CEO Compensation With the industry

According to our data, Triumph Bancorp, Inc. has a market capitalization of US$2.2b, and paid its CEO total annual compensation worth US$1.4m over the year to December 2020. Notably, that's an increase of 15% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$650k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$2.4m. Accordingly, Triumph Bancorp pays its CEO under the industry median. Furthermore, Aaron Graft directly owns US$23m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2020

2019

Proportion (2020)

Salary

US$650k

US$570k

45%

Other

US$798k

US$685k

55%

Total Compensation

US$1.4m

US$1.3m

100%

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. Our data reveals that Triumph Bancorp allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

Triumph Bancorp, Inc.'s Growth

Triumph Bancorp, Inc.'s earnings per share (EPS) grew 11% per year over the last three years. Its revenue is up 9.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Triumph Bancorp, Inc. Been A Good Investment?

Boasting a total shareholder return of 126% over three years, Triumph Bancorp, Inc. has done well by shareholders. 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.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Triumph Bancorp that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.